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 Thu 4:16 PM ET):

Schwab U.S. Small-Cap ETF (SCHA)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
45.81	46.72	46.25	-0.35	1.4M	-	15B

SCHA Dividend-Like Income Using Covered Calls

With SCHA at 46.25, 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%	1.39	0.4
5%	2.31	0.6
10%	4.63	1.3

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
May 17	47.00	0.25	23	1.1	0.28 (0.6%)
Jun 21	47.00	0.50	58	0.9	0.28 (0.6%)

5% Yield On SCHA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	47.00	0.25	23	1.1	0.28 (0.6%)
Jun 21	47.00	0.50	58	0.9	0.28 (0.6%)

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Top 10 Open Interest For May 17 Expiration				Top 5 High Yield
1.	QQQ dividend	6.	EEM dividend	1.	WOLF dividend
2.	HYG dividend	7.	KWEB dividend	2.	FSLY dividend
3.	IWM dividend	8.	SLV dividend	3.	INTC dividend
4.	SPY dividend	9.	TSLA dividend	4.	GRPN dividend
5.	FXI dividend	10.	NVDA dividend	5.	MPW dividend

Want more examples? SCCO Dividend | SCHB Dividend