MUB Dividend Type Payments

iShares S&P National Muni-Bond dividend

Although MUB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares S&P National Muni-Bond to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

iShares S&P National Muni-Bond (MUB)
Bid Ask Last Change Volume P/E Market Cap
105.76 110.00 108.42 +0.05 2.5M - 0.0B

MUB Dividend-Like Income Using Covered Calls

With MUB at 108.42, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 3.25 0.9
5% 5.42 1.5
10% 10.84 3.0

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? MU Dividend | MUFG Dividend