SCHO Dividend Type Payments
Although SCHO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Schwab Short-Term U.S. Treasury ETF 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):
| Schwab Short-Term U.S. Treasury ETF (SCHO) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 24.43 | 24.44 | 24.43 | +0.02 | 1.6M | - | 15B |
SCHO Dividend-Like Income Using Covered Calls
With SCHO at 24.43, 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% | 0.73 | 0.2 |
| 5% | 1.22 | 0.3 |
| 10% | 2.44 | 0.7 |
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:
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | RDDT dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | WGS dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | SNAP dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | ZETA dividend | |
| 5. | QQQ dividend | 10. | IBIT dividend | 5. | ENVX dividend | |
Want more examples? SCHM Dividend | SCHP Dividend
