DGRO Dividend Type Payments
Although DGRO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares Core Dividend Growth ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| iShares Core Dividend Growth ETF (DGRO) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 62.21 | 62.95 | 62.35 | -0.14 | 1.5M | - | 4.2B |
DGRO Dividend-Like Income Using Covered Calls
With DGRO at 62.35, 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% | 1.87 | 0.5 |
| 5% | 3.12 | 0.9 |
| 10% | 6.24 | 1.7 |
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:
| 3% Yield On DGRO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 18 | 63.00 | 0.55 | 44 | 1.3 | 0.05 (0.1%) | |
| Sep 19 | 63.00 | 1.20 | 107 | 1.1 | 0.05 (0.1%) | |
| 5% Yield On DGRO Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 18 | 63.00 | 0.55 | 44 | 1.3 | 0.05 (0.1%) | |
| Sep 19 | 63.00 | 1.20 | 107 | 1.1 | 0.05 (0.1%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | IOT dividend | |
| 2. | SPY dividend | 7. | EEM dividend | 2. | AVGO dividend | |
| 3. | SLV dividend | 8. | TSLA dividend | 3. | RXRX dividend | |
| 4. | QQQ dividend | 9. | FXI dividend | 4. | LULU dividend | |
| 5. | GLD dividend | 10. | TLT dividend | 5. | ALT dividend | |
Want more examples? DGP Dividend | DGRW Dividend
