SLQD Dividend Type Payments
Although SLQD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 0-5 Year Investment Grade 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 Wed 4:16 PM ET):
iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
44.05 | 53.41 | 48.79 | -0.09 | 128K | - | 2.4B |
SLQD Dividend-Like Income Using Covered Calls
With SLQD at 48.79, 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% | 1.46 | 0.4 |
5% | 2.44 | 0.7 |
10% | 4.88 | 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 May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | FSLY dividend | |
2. | QQQ dividend | 7. | KWEB dividend | 2. | WOLF dividend | |
3. | HYG dividend | 8. | TSLA dividend | 3. | DASH dividend | |
4. | SPY dividend | 9. | SLV dividend | 4. | CGC dividend | |
5. | FXI dividend | 10. | AMZN dividend | 5. | DKNG dividend |
Want more examples? SLP Dividend | SLQT Dividend