SCHA Dividend Type Payments

Although SCHA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Schwab U.S. Small-Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Schwab U.S. Small-Cap ETF (SCHA)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
23.26	23.71	23.52	+0.57	1.9M	-	15B

SCHA Dividend-Like Income Using Covered Calls

With SCHA at 23.52, here's a table showing how big the annual "dividend" (i.e. 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%	0.71	0.2
5%	1.18	0.3
10%	2.35	0.6

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:

3% Yield On SCHA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	25.00	0.70	169	0.4	1.29 (5.5%)
Jul 18	25.00	0.30	78	0.4	1.29 (5.5%)

5% Yield On SCHA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	25.00	0.70	169	0.4	1.29 (5.5%)
Jul 18	25.00	0.30	78	0.4	1.29 (5.5%)

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Want more examples? SCCO Dividend | SCHB Dividend