SCHD Dividend Type Payments

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

Schwab US Dividend Equity ETF (SCHD)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
78.12	78.19	78.13	+0.36	3.0M	-	52B

SCHD Dividend-Like Income Using Covered Calls

With SCHD at 78.13, 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%	2.34	0.6
5%	3.91	1.1
10%	7.81	2.1

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 SCHD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	78.00	1.05	24	3.6	0.00 (0.0%)
Jun 21	78.00	1.50	59	2.2	0.00 (0.0%)

5% Yield On SCHD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	78.00	1.05	24	3.6	0.00 (0.0%)
Jun 21	78.00	1.50	59	2.2	0.00 (0.0%)

10% Yield On SCHD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 17	78.00	1.05	24	3.6	0.00 (0.0%)
Jun 21	78.00	1.50	59	2.2	0.00 (0.0%)

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Top 10 Open Interest For May 17 Expiration				Top 5 High Yield
1.	IWM dividend	6.	EEM dividend	1.	SNAP dividend
2.	HYG dividend	7.	KWEB dividend	2.	META dividend
3.	QQQ dividend	8.	TSLA dividend	3.	FSLY dividend
4.	SPY dividend	9.	SLV dividend	4.	CVNA dividend
5.	FXI dividend	10.	EWZ dividend	5.	PINS dividend

Want more examples? SCHC Dividend | SCHE Dividend