TLT Dividend Type Payments

iShares 20+ Year Treasury Bond ETF dividend

Although TLT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 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 Thu 11:00 AM ET):

iShares 20+ Year Treasury Bond ETF (TLT)
Bid Ask Last Change Volume P/E Market Cap
91.61 91.62 91.62 -0.58 10.9M - 12B

TLT Dividend-Like Income Using Covered Calls

With TLT at 91.62, 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% 2.75 0.8
5% 4.58 1.3
10% 9.16 2.5

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:

3% Yield On TLT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 91.50 0.66 9 6.0 0.00 (0.0%)
Dec 27 91.50 0.81 16 4.3 0.00 (0.0%)
5% Yield On TLT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 91.50 0.66 9 6.0 0.00 (0.0%)
Dec 27 91.50 0.81 16 4.3 0.00 (0.0%)
10% Yield On TLT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 91.50 0.66 9 6.0 0.00 (0.0%)
Dec 27 91.50 0.81 16 4.3 0.00 (0.0%)

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Top 10 Open Interest For Dec 20 Expiration     Top 5 High Yield
1.NVDA dividend 6.IWM dividend   1.QUBT dividend
2.SPY dividend 7.QQQ dividend   2.NNE dividend
3.FXI dividend 8.KWEB dividend   3.WULF dividend
4.XLF dividend 9.TLT dividend   4.LRMR dividend
5.EEM dividend 10.EWZ dividend   5.ACHR dividend

Want more examples? TLSA Dividend | TLTD Dividend