TLH Dividend Type Payments

iShares 10-20 Year Treasury Bond ETF dividend

Although TLH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 10-20 Year Treasury Bond ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:10 PM ET):

iShares 10-20 Year Treasury Bond ETF (TLH)
Bid Ask Last Change Volume P/E Market Cap
101.56 101.57 101.56 +0.16 747K - 0.4B

TLH Dividend-Like Income Using Covered Calls

With TLH at 101.56, 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% 3.05 0.8
5% 5.08 1.4
10% 10.16 2.8

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 TLH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 102.00 0.20 5 4.0 0.43 (0.4%)
Jan 16 102.00 0.85 33 2.6 0.43 (0.4%)
5% Yield On TLH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 102.00 0.20 5 4.0 0.43 (0.4%)
Jan 16 102.00 0.85 33 2.6 0.43 (0.4%)
10% Yield On TLH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 102.00 0.20 5 4.0 0.43 (0.4%)

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