SCHZ Dividend Type Payments
Although SCHZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Schwab US Aggregate Bond ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:35 AM ET):
| Schwab US Aggregate Bond ETF (SCHZ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 23.40 | 23.41 | 23.40 | -0.03 | 397K | - | 7.1B |
SCHZ Dividend-Like Income Using Covered Calls
With SCHZ at 23.40, 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% | 0.70 | 0.2 |
| 5% | 1.17 | 0.3 |
| 10% | 2.34 | 0.6 |
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:
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | ALT dividend | |
| 2. | SPY dividend | 7. | NFLX dividend | 2. | EWTX dividend | |
| 3. | IBIT dividend | 8. | SLV dividend | 3. | KMX dividend | |
| 4. | QQQ dividend | 9. | XLF dividend | 4. | WULF dividend | |
| 5. | TLT dividend | 10. | AMZN dividend | 5. | METC dividend | |
Want more examples? SCHX Dividend | SCI Dividend
