SHYG Dividend Type Payments
Although SHYG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 0-5 Year High Yield Corporate Bond ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 40.00 | 43.00 | 41.97 | +0.18 | 1.2M | - | 5.0B |
SHYG Dividend-Like Income Using Covered Calls
With SHYG at 41.97, 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% | 1.26 | 0.3 |
| 5% | 2.10 | 0.6 |
| 10% | 4.20 | 1.1 |
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. | SPY dividend | 6. | KWEB dividend | 1. | CVNA dividend | |
| 2. | IWM dividend | 7. | EEM dividend | 2. | FSLY dividend | |
| 3. | HYG dividend | 8. | TSLA dividend | 3. | PENN dividend | |
| 4. | QQQ dividend | 9. | SLV dividend | 4. | SNAP dividend | |
| 5. | FXI dividend | 10. | NVDA dividend | 5. | CLSK dividend | |
Want more examples? SHYF Dividend | SHYL Dividend
