LTPZ Dividend Type Payments
Although LTPZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Pimco 15 Year U.S. TIPS Index 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 Fri 4:16 PM ET):
| Pimco 15 Year U.S. TIPS Index Exchange-Traded Fund (LTPZ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 54.03 | 54.09 | 54.08 | +0.45 | 80K | - | 0.0B |
LTPZ Dividend-Like Income Using Covered Calls
With LTPZ at 54.08, 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% | 1.62 | 0.4 |
| 5% | 2.70 | 0.7 |
| 10% | 5.41 | 1.5 |
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 LTPZ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 20 | 55.00 | 0.55 | 120 | 0.5 | 0.91 (1.7%) | |
| Mar 21 | 55.00 | 0.15 | 29 | 0.5 | 0.91 (1.7%) | |
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| 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? LTL Dividend | LU Dividend
