HYG Dividend Type Payments

iShares iBoxx $ High Yield Corporate Bond ETF dividend

Although HYG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares iBoxx $ High Yield 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 Thu 4:16 PM ET):

iShares iBoxx $ High Yield Corporate Bond ETF (HYG)
Bid Ask Last Change Volume P/E Market Cap
81.17 81.19 81.23 +0.18 42.5M - 15B

HYG Dividend-Like Income Using Covered Calls

With HYG at 81.23, 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% 2.44 0.7
5% 4.06 1.1
10% 8.12 2.2

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 Oct 17 Expiration     Top 5 High Yield
1.SLV dividend 6.PCG dividend   1.QURE dividend
2.NVDA dividend 7.FXI dividend   2.OPEN dividend
3.GLD dividend 8.IWM dividend   3.BEAM dividend
4.IBIT dividend 9.SPY dividend   4.AEVA dividend
5.EEM dividend 10.HYG dividend   5.LDI dividend

Want more examples? HYEM Dividend | HYGH Dividend