TIPX Dividend Type Payments
Although TIPX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Bloomberg 1-10 Year TIPS ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:55 PM ET):
| SPDR Bloomberg 1-10 Year TIPS ETF (TIPX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 19.04 | 19.05 | 19.05 | -0.02 | 186K | - | 0.0B |
TIPX Dividend-Like Income Using Covered Calls
With TIPX at 19.05, 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% | 0.57 | 0.2 |
| 5% | 0.95 | 0.3 |
| 10% | 1.91 | 0.5 |
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 Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | COGT dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | IREN dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | IONQ dividend | |
| 4. | IWM dividend | 9. | FXI dividend | 4. | RCAT dividend | |
| 5. | TSLA dividend | 10. | QQQ dividend | 5. | STZ dividend | |
Want more examples? TIP Dividend | TIPZ Dividend
