SCHD Dividend Type Payments

Schwab US Dividend Equity ETF dividend

Although SCHD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Schwab US Dividend Equity 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):

Schwab US Dividend Equity ETF (SCHD)
Bid Ask Last Change Volume P/E Market Cap
28.64 28.66 28.63 -0.25 12.2M - 58B

SCHD Dividend-Like Income Using Covered Calls

With SCHD at 28.63, 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% 0.86 0.2
5% 1.43 0.4
10% 2.86 0.8

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 SCHD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 29.00 0.15 36 0.4 0.34 (1.2%)
Jan 17 28.67 0.40 64 0.6 0.01 (0.0%)
5% Yield On SCHD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 29.00 0.15 36 0.4 0.34 (1.2%)
Jan 17 28.67 0.40 64 0.6 0.01 (0.0%)

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Top 10 Open Interest For Dec 20 Expiration     Top 5 High Yield
1.NVDA dividend 6.QQQ dividend   1.SAVA dividend
2.SPY dividend 7.XLF dividend   2.RKLB dividend
3.EEM dividend 8.KWEB dividend   3.LUNR dividend
4.FXI dividend 9.TLT dividend   4.NMRA dividend
5.IWM dividend 10.KRE dividend   5.CRVS dividend

Want more examples? SCHC Dividend | SCHE Dividend