SCHR Dividend Type Payments

Schwab Intermediate-Term U.S. Treasury ETF dividend

Although SCHR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Schwab Intermediate-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 Fri 10:05 AM ET):

Schwab Intermediate-Term U.S. Treasury ETF (SCHR)
Bid Ask Last Change Volume P/E Market Cap
47.97 47.98 47.98 +0.10 117K - 7.1B

SCHR Dividend-Like Income Using Covered Calls

With SCHR at 47.98, 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% 4.80 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 SCHR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 48.00 0.20 22 0.9 0.02 (0.0%)
Jun 21 48.00 0.40 57 0.7 0.02 (0.0%)
5% Yield On SCHR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 48.00 0.20 22 0.9 0.02 (0.0%)
Jun 21 48.00 0.40 57 0.7 0.02 (0.0%)

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.ENVX dividend
2.HYG dividend 7.KWEB dividend   2.WOLF dividend
3.QQQ dividend 8.SLV dividend   3.FSLY dividend
4.SPY dividend 9.TSLA dividend   4.CGC dividend
5.FXI dividend 10.NVDA dividend   5.DJT dividend

Want more examples? SCHQ Dividend | SCHV Dividend