BOND Dividend Type Payments
Although BOND has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PIMCO Active Bond Exchange-Traded Fund 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 Wed 4:16 PM ET):
| PIMCO Active Bond Exchange-Traded Fund Exchange-Traded Fund (BOND) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 93.65 | 94.00 | 93.79 | -0.01 | 377K | - | 0.0B |
BOND Dividend-Like Income Using Covered Calls
With BOND at 93.79, 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% | 2.81 | 0.8 |
| 5% | 4.69 | 1.3 |
| 10% | 9.38 | 2.6 |
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 BOND Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 21 | 94.00 | 0.45 | 38 | 1.2 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | INTC dividend | 1. | BHVN dividend | |
| 2. | IBIT dividend | 7. | SLV dividend | 2. | NB dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | SANA dividend | |
| 4. | GLD dividend | 9. | QQQ dividend | 4. | AREC dividend | |
| 5. | TSLA dividend | 10. | OPEN dividend | 5. | EU dividend | |
Want more examples? BOKF Dividend | BOOM Dividend
