BIL Dividend Type Payments
Although BIL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Bloomberg 1-3 Month T-Bill ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 91.44 | 91.45 | 91.45 | +0.03 | 17.4M | - | 1.1B |
BIL Dividend-Like Income Using Covered Calls
With BIL at 91.45, 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% | 2.74 | 0.8 |
| 5% | 4.57 | 1.3 |
| 10% | 9.15 | 2.5 |
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 BIL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 21 | 91.00 | 0.60 | 19 | 0.8 | 0.00 (0.0%) | |
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| 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. | SNAP dividend | |
| 3. | SPY dividend | 8. | QQQ dividend | 3. | QUBT dividend | |
| 4. | IWM dividend | 9. | KWEB dividend | 4. | ENPH dividend | |
| 5. | FXI dividend | 10. | IBIT dividend | 5. | SYM dividend | |
Want more examples? BIIB Dividend | BILI Dividend
