HYG Dividend Type Payments

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
80.48	80.54	80.51	-0.29	73.5M	-	15B

HYG Dividend-Like Income Using Covered Calls

With HYG at 80.51, 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%	2.42	0.7
5%	4.03	1.1
10%	8.05	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:

3% Yield On HYG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 7	80.50	0.32	23	1.2	0.00 (0.0%)
Nov 14	80.50	0.49	30	1.5	0.00 (0.0%)

5% Yield On HYG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 7	80.50	0.32	23	1.2	0.00 (0.0%)
Nov 14	80.50	0.49	30	1.5	0.00 (0.0%)

10% Yield On HYG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 24	80.50	0.42	9	4.2	0.00 (0.0%)
Oct 31	80.50	0.51	16	2.9	0.00 (0.0%)

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Top 10 Open Interest For Nov 21 Expiration				Top 5 High Yield
1.	KVUE dividend	6.	HYG dividend	1.	DBRG dividend
2.	IBIT dividend	7.	GLD dividend	2.	CRML dividend
3.	NVDA dividend	8.	TLT dividend	3.	PSO dividend
4.	SLV dividend	9.	EEM dividend	4.	ARCT dividend
5.	FXI dividend	10.	INTC dividend	5.	ABAT dividend

Want more examples? HYEM Dividend | HYGH Dividend