ISTB Dividend Type Payments
Although ISTB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Core 1-5 Year USD Bond 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 1-5 Year USD Bond ETF (ISTB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 47.88 | 48.77 | 48.35 | -0.04 | 1.0M | - | 6.1B |
ISTB Dividend-Like Income Using Covered Calls
With ISTB at 48.35, 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% | 1.45 | 0.4 |
| 5% | 2.42 | 0.7 |
| 10% | 4.84 | 1.3 |
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:
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| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | RUN dividend | |
| 2. | SPY dividend | 7. | NIO dividend | 2. | RKT dividend | |
| 3. | SLV dividend | 8. | EEM dividend | 3. | QBTS dividend | |
| 4. | ASHR dividend | 9. | TSLA dividend | 4. | RIOT dividend | |
| 5. | QQQ dividend | 10. | TLT dividend | 5. | CELH dividend | |
Want more examples? ISSC Dividend | IT Dividend
