TLH Dividend Type Payments

iShares 10-20 Year Treasury Bond ETF dividend

Although TLH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 10-20 Year Treasury Bond 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):

iShares 10-20 Year Treasury Bond ETF (TLH)
Bid Ask Last Change Volume P/E Market Cap
101.01 103.20 102.33 +0.41 450K - 0.4B

TLH Dividend-Like Income Using Covered Calls

With TLH at 102.33, 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% 3.07 0.8
5% 5.12 1.4
10% 10.23 2.8

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 TLH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 104.00 0.80 32 2.5 0.80 (0.8%)
Jan 17 103.00 1.80 60 2.7 0.00 (0.0%)
5% Yield On TLH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 104.00 0.80 32 2.5 0.80 (0.8%)
Jan 17 103.00 1.80 60 2.7 0.00 (0.0%)

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

 
 
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.HUT dividend
3.EEM dividend 8.KWEB dividend   3.CRVS dividend
4.FXI dividend 9.TLT dividend   4.ANAB dividend
5.IWM dividend 10.AAPL dividend   5.CLSK dividend

Want more examples? TKR Dividend | TLN Dividend