MBB Dividend Type Payments

iShares MBS ETF dividend

Although MBB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares MBS 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 MBS ETF (MBB)
Bid Ask Last Change Volume P/E Market Cap
89.99 91.85 91.66 +0.40 3.0M - 35B

MBB Dividend-Like Income Using Covered Calls

With MBB at 91.66, 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% 2.75 0.8
5% 4.58 1.3
10% 9.17 2.5

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 MBB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 92.00 0.45 29 1.6 0.15 (0.2%)
Jun 20 92.00 1.60 183 0.9 0.15 (0.2%)
5% Yield On MBB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 92.00 0.45 29 1.6 0.15 (0.2%)
Feb 21 92.00 0.85 64 1.3 0.15 (0.2%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Jan 17 Expiration     Top 5 High Yield
1.NVDA dividend 6.INTC dividend   1.RGTI dividend
2.SLV dividend 7.SPY dividend   2.NMRA dividend
3.AAPL dividend 8.TSLA dividend   3.HUMA dividend
4.EEM dividend 9.IWM dividend   4.DLO dividend
5.XLF dividend 10.TLT dividend   5.MARA dividend

Want more examples? MAXN Dividend | MBC Dividend