SHY Dividend Type Payments
Although SHY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 1-3 Year Treasury Bond ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
iShares 1-3 Year Treasury Bond ETF (SHY) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
81.15 | 81.16 | 81.15 | -0.04 | 3.1M | - | 19B |
SHY Dividend-Like Income Using Covered Calls
With SHY at 81.15, 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% | 2.43 | 0.7 |
5% | 4.06 | 1.1 |
10% | 8.12 | 2.2 |
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 May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | HYG dividend | 6. | KWEB dividend | 1. | VNDA dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | CVNA dividend | |
3. | FXI dividend | 8. | SLV dividend | 3. | DJT dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | MPW dividend | |
5. | QQQ dividend | 10. | EWZ dividend | 5. | UPST dividend |
Want more examples? SHW Dividend | SHYF Dividend