STPZ Dividend Type Payments
Although STPZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 3:40 PM ET):
PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund (STPZ) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
51.24 | 51.25 | 51.24 | -0.06 | 26K | - | 0.0B |
STPZ Dividend-Like Income Using Covered Calls
With STPZ at 51.24, 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% | 1.54 | 0.4 |
5% | 2.56 | 0.7 |
10% | 5.12 | 1.4 |
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. | QQQ dividend | 6. | EEM dividend | 1. | FSLY dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | WOLF dividend | |
3. | IWM dividend | 8. | SLV dividend | 3. | SNAP dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | PINS dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | UPST dividend |
Want more examples? STOK Dividend | STR Dividend