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 Tue 4:16 PM ET):
| PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund (STPZ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 51.00 | 57.16 | 54.07 | +0.02 | 43K | - | 0.0B |
STPZ Dividend-Like Income Using Covered Calls
With STPZ at 54.07, 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% | 1.62 | 0.4 |
| 5% | 2.70 | 0.7 |
| 10% | 5.41 | 1.5 |
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 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | RDDT dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | WGS dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | SNAP dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | ZETA dividend | |
| 5. | QQQ dividend | 10. | IBIT dividend | 5. | ENVX dividend | |
Want more examples? STOK Dividend | STR Dividend
