SCHX Dividend Type Payments

Although SCHX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Schwab U.S. Large-Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 1:40 PM ET):

Schwab U.S. Large-Cap ETF (SCHX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
26.48	26.49	26.48	-0.25	21.1M	-	51B

SCHX Dividend-Like Income Using Covered Calls

With SCHX at 26.48, 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%	0.79	0.2
5%	1.32	0.4
10%	2.65	0.7

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 SCHX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 20	27.00	0.25	66	0.4	0.51 (1.9%)

5% Yield On SCHX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 20	27.00	0.25	66	0.4	0.51 (1.9%)

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5.	TLT dividend	10.	AMZN dividend	5.	APLD dividend

Want more examples? SCHW Dividend | SCHZ Dividend