SHLD Dividend Type Payments

Although SHLD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X Funds Global X Defense Tech ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 9:50 AM ET):

Global X Funds Global X Defense Tech ETF (SHLD)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
57.47	57.51	57.47	-0.73	257K	-	0.0B

SHLD Dividend-Like Income Using Covered Calls

With SHLD at 57.47, 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%	1.72	0.5
5%	2.87	0.8
10%	5.75	1.6

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:

3% Yield On SHLD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 18	58.00	1.20	40	3.0	0.49 (0.9%)
Sep 19	58.00	2.20	103	2.1	0.49 (0.9%)

5% Yield On SHLD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 18	58.00	1.20	40	3.0	0.49 (0.9%)
Sep 19	58.00	2.20	103	2.1	0.49 (0.9%)

10% Yield On SHLD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 18	58.00	1.20	40	3.0	0.49 (0.9%)
Sep 19	58.00	2.20	103	2.1	0.49 (0.9%)

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Want more examples? SHEN Dividend | SHM Dividend