SCHM Dividend Type Payments

Schwab US Mid Cap ETF dividend

Although SCHM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Schwab US Mid Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:10 PM ET):

Schwab US Mid Cap ETF (SCHM)
Bid Ask Last Change Volume P/E Market Cap
49.09 49.12 49.09 +0.41 324K - 0.0B

SCHM Dividend-Like Income Using Covered Calls

With SCHM at 49.09, 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% 1.47 0.4
5% 2.45 0.7
10% 4.91 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 SCHM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 49.00 0.65 32 1.7 0.00 (0.0%)
Apr 18 50.00 0.85 122 0.7 0.88 (1.8%)
5% Yield On SCHM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 49.00 0.65 32 1.7 0.00 (0.0%)
Apr 18 50.00 0.85 122 0.7 0.88 (1.8%)
10% Yield On SCHM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 49.00 0.65 32 1.7 0.00 (0.0%)

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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? SCHL Dividend | SCHN Dividend