SCHG Dividend Type Payments

Although SCHG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Schwab US Large-Cap Growth 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 US Large-Cap Growth ETF (SCHG)
Bid Ask Last Change Volume P/E Market Cap
70.64 71.77 71.58 -1.52 563K - 0.0B

SCHG Dividend-Like Income Using Covered Calls

With SCHG at 71.58, 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% 2.15 0.6
5% 3.58 1.0
10% 7.16 2.0

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
Dec 21 74.00 0.05 8 0.6 2.23 (3.1%)
Jan 18 75.00 0.25 36 0.7 3.23 (4.5%)
5% Yield On SCHG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 72.00 0.45 8 5.6 0.23 (0.3%)
Jan 18 74.00 0.45 36 1.3 2.23 (3.1%)
10% Yield On SCHG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 72.00 0.45 8 5.6 0.23 (0.3%)
Jan 18 72.00 1.45 36 4.0 0.23 (0.3%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? SCHF Dividend | SCHH Dividend