HDV Dividend Type Payments
Although HDV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Core High Dividend ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| iShares Core High Dividend ETF (HDV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 116.45 | 121.57 | 119.94 | +0.35 | 336K | - | 11B |
HDV Dividend-Like Income Using Covered Calls
With HDV at 119.94, 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% | 3.60 | 1.0 |
| 5% | 6.00 | 1.6 |
| 10% | 11.99 | 3.3 |
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 HDV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 121.00 | 2.60 | 176 | 1.2 | 0.00 (0.0%) | |
| May 16 | 121.00 | 1.80 | 85 | 1.4 | 0.00 (0.0%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | LUNR dividend | |
| 2. | FXI dividend | 7. | INTC dividend | 2. | HIMS dividend | |
| 3. | SPY dividend | 8. | SLV dividend | 3. | RGTI dividend | |
| 4. | EEM dividend | 9. | QQQ dividend | 4. | SOUN dividend | |
| 5. | IWM dividend | 10. | HYG dividend | 5. | WOLF dividend | |
Want more examples? HDSN Dividend | HE Dividend
