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 Thu 11:35 AM ET):

iShares 0-5 Year High Yield Corporate Bond ETF (SHYG)
Bid Ask Last Change Volume P/E Market Cap
46.45 46.46 46.45 -0.06 82K - 0.0B

SHYG Dividend-Like Income Using Covered Calls

With SHYG at 46.45, here's a table showing how big the annual "dividend" (ie. 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% 1.39 0.4
5% 2.32 0.6
10% 4.65 1.3

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 Jul 19 Expiration     Top 5 High Yield
1.SPY dividend 6.OIH dividend   1.SKX dividend
2.SPX dividend 7.USO dividend   2.CLF dividend
3.EEM dividend 8.AAPL dividend   3.CRWD dividend
4.IWM dividend 9.FXI dividend   4.MAN dividend
5.QQQ dividend 10.VXX dividend   5.OSTK dividend

Want more examples? SHYD Dividend | SHYL Dividend