TLT Dividend Type Payments

Although TLT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 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 Fri 4:16 PM ET):

iShares 20+ Year Treasury Bond ETF (TLT)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
88.01	88.02	87.76	-0.58	46.8M	-	11B

TLT Dividend-Like Income Using Covered Calls

With TLT at 87.76, 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%	2.63	0.7
5%	4.39	1.2
10%	8.78	2.4

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:

3% Yield On TLT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 7	88.00	0.57	8	6.9	0.00 (0.0%)
Mar 7	88.00	1.45	36	4.0	0.00 (0.0%)

5% Yield On TLT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 7	88.00	0.57	8	6.9	0.00 (0.0%)
Mar 7	88.00	1.45	36	4.0	0.00 (0.0%)

10% Yield On TLT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 7	88.00	0.57	8	6.9	0.00 (0.0%)
Mar 7	88.00	1.45	36	4.0	0.00 (0.0%)

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

Top 10 Open Interest For Feb 21 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	TSLA dividend	1.	LUMN dividend
2.	TLT dividend	7.	SLV dividend	2.	AFRM dividend
3.	SPY dividend	8.	QQQ dividend	3.	QBTS dividend
4.	IWM dividend	9.	KWEB dividend	4.	BYON dividend
5.	FXI dividend	10.	IBIT dividend	5.	SYM dividend

Want more examples? TLSA Dividend | TLTD Dividend