SLV Dividend Type Payments
Although SLV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Silver Trust to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:10 PM ET):
iShares Silver Trust (SLV) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
28.33 | 28.34 | 28.34 | -0.70 | 23.0M | - | 15B |
SLV Dividend-Like Income Using Covered Calls
With SLV at 28.34, 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% | 0.85 | 0.2 |
5% | 1.42 | 0.4 |
10% | 2.83 | 0.8 |
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 SLV Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 20 | 28.50 | 0.44 | 9 | 4.9 | 0.16 (0.6%) | |
Dec 27 | 28.50 | 0.56 | 16 | 3.5 | 0.16 (0.6%) |
5% Yield On SLV Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 20 | 28.50 | 0.44 | 9 | 4.9 | 0.16 (0.6%) | |
Dec 27 | 28.50 | 0.56 | 16 | 3.5 | 0.16 (0.6%) |
10% Yield On SLV Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 20 | 28.50 | 0.44 | 9 | 4.9 | 0.16 (0.6%) | |
Dec 27 | 28.50 | 0.56 | 16 | 3.5 | 0.16 (0.6%) |
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Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | IWM dividend | 1. | HUT dividend | |
2. | SPY dividend | 7. | QQQ dividend | 2. | QUBT dividend | |
3. | FXI dividend | 8. | KWEB dividend | 3. | SERV dividend | |
4. | XLF dividend | 9. | TLT dividend | 4. | ACHR dividend | |
5. | EEM dividend | 10. | EWZ dividend | 5. | TEM dividend |
Want more examples? SLS Dividend | SLVP Dividend