SCHG Dividend Type Payments

Although SCHG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SCHWAB US LG-CAP GROWTH E to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

SCHWAB US LG-CAP GROWTH E (SCHG)
Bid Ask Last Change Volume P/E Market Cap
78.92 79.59 79.38 +0.52 455K - 62B

SCHG Dividend-Like Income Using Covered Calls

With SCHG at 79.38, 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% 2.38 0.7
5% 3.97 1.1
10% 7.94 2.2

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 SCHG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 80.00 0.45 39 1.2 0.41 (0.5%)
Oct 19 80.00 0.80 67 1.2 0.41 (0.5%)
5% Yield On SCHG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 80.00 0.45 39 1.2 0.41 (0.5%)
Oct 19 80.00 0.80 67 1.2 0.41 (0.5%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
2.EEM dividend 7.AABA dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.FB dividend   4.CGC dividend
5.XLF dividend 10.GLD dividend   5.A dividend

Want more examples? SCHF Dividend | SCHH Dividend