SLQD Dividend Type Payments
Although SLQD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 0-5 Year Investment Grade Corporate Bond 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 0-5 Year Investment Grade Corporate Bond ETF (SLQD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 44.89 | 54.43 | 49.62 | +0.04 | 266K | - | 2.4B |
SLQD Dividend-Like Income Using Covered Calls
With SLQD at 49.62, 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% | 1.49 | 0.4 |
| 5% | 2.48 | 0.7 |
| 10% | 4.96 | 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. | 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? SLP Dividend | SLQT Dividend
