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 Fri 4:16 PM ET):

SCHWAB US LG-CAP GROWTH E (SCHG)
Bid Ask Last Change Volume P/E Market Cap
76.19 77.29 76.71 -0.28 510K - 62B

SCHG Dividend-Like Income Using Covered Calls

With SCHG at 76.71, 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% 2.30 0.6
5% 3.84 1.1
10% 7.67 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 SCHG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 79.00 0.40 29 1.4 1.71 (2.2%)
Jan 18 81.00 0.65 92 0.7 3.71 (4.8%)
5% Yield On SCHG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 79.00 0.40 29 1.4 1.71 (2.2%)
Jan 18 79.00 1.30 92 1.4 1.71 (2.2%)
10% Yield On SCHG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 77.00 1.05 29 2.6 0.00 (0.0%)
Jan 18 77.00 2.25 92 2.1 0.00 (0.0%)

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Want more examples? SCHF Dividend | SCHH Dividend