SCHO Dividend Type Payments
Although SCHO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Schwab Short-Term U.S. Treasury 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 Short-Term U.S. Treasury ETF (SCHO) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 47.91 | 47.92 | 47.92 | +0.01 | 763K | - | 14B |
SCHO Dividend-Like Income Using Covered Calls
With SCHO at 47.92, 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% | 1.44 | 0.4 |
| 5% | 2.40 | 0.7 |
| 10% | 4.79 | 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:
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | EEM dividend | 1. | AAOI dividend | |
| 2. | SPY dividend | 7. | TSLA dividend | 2. | BYND dividend | |
| 3. | QQQ dividend | 8. | SLV dividend | 3. | NVAX dividend | |
| 4. | HYG dividend | 9. | TLT dividend | 4. | RBLX dividend | |
| 5. | FXI dividend | 10. | NVDA dividend | 5. | MPW dividend | |
Want more examples? SCHM Dividend | SCHP Dividend
