MUNI Dividend Type Payments
Although MUNI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PIMCO Intermediate Municipal Bond Active 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 Tue 4:16 PM ET):
| PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund (MUNI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 48.83 | 52.92 | 51.85 | +0.08 | 368K | - | 0.0B |
MUNI Dividend-Like Income Using Covered Calls
With MUNI at 51.85, 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% | 1.56 | 0.4 |
| 5% | 2.59 | 0.7 |
| 10% | 5.19 | 1.4 |
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 Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | XLF dividend | 1. | NMRA dividend | |
| 2. | SLV dividend | 7. | SPY dividend | 2. | RUM dividend | |
| 3. | AAPL dividend | 8. | TSLA dividend | 3. | X dividend | |
| 4. | EEM dividend | 9. | IWM dividend | 4. | CLSK dividend | |
| 5. | INTC dividend | 10. | TLT dividend | 5. | QUBT dividend | |
Want more examples? MUFG Dividend | MUR Dividend
