GVI Dividend Type Payments
Although GVI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Intermediate Government/Credit 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 4:16 PM ET):
| iShares Intermediate Government/Credit Bond ETF (GVI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 98.99 | 109.90 | 104.60 | +0.12 | 68K | - | 1.8B |
GVI Dividend-Like Income Using Covered Calls
With GVI at 104.60, 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% | 3.14 | 0.9 |
| 5% | 5.23 | 1.4 |
| 10% | 10.46 | 2.9 |
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 Dec 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | SAVA dividend | |
| 2. | SPY dividend | 7. | XLF dividend | 2. | CRVS dividend | |
| 3. | EEM dividend | 8. | KWEB dividend | 3. | ANAB dividend | |
| 4. | FXI dividend | 9. | TLT dividend | 4. | APP dividend | |
| 5. | IWM dividend | 10. | KRE dividend | 5. | RCAT dividend | |
Want more examples? GVA Dividend | GVIP Dividend
