SCHW Dividend Type Payments
Although SCHW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Charles Schwab Corporation (The) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Charles Schwab Corporation (The) (SCHW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 101.10 | 101.25 | 101.18 | -0.23 | 5.7M | 24 | 185B |
SCHW Dividend-Like Income Using Covered Calls
With SCHW at 101.18, 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% | 3.04 | 0.8 |
| 5% | 5.06 | 1.4 |
| 10% | 10.12 | 2.8 |
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 SCHW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 26 | 101.00 | 0.62 | 4 | 9.3 | 0.00 (0.0%) | |
| Jan 2 | 101.00 | 1.26 | 11 | 9.2 | 0.00 (0.0%) | |
| 5% Yield On SCHW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 26 | 101.00 | 0.62 | 4 | 9.3 | 0.00 (0.0%) | |
| Jan 2 | 101.00 | 1.26 | 11 | 9.2 | 0.00 (0.0%) | |
| 10% Yield On SCHW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 26 | 101.00 | 0.62 | 4 | 9.3 | 0.00 (0.0%) | |
| Jan 2 | 101.00 | 1.26 | 11 | 9.2 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | OMER dividend | |
| 2. | INTC dividend | 7. | GLD dividend | 2. | TMC dividend | |
| 3. | TLT dividend | 8. | NIO dividend | 3. | DAWN dividend | |
| 4. | IBIT dividend | 9. | NFLX dividend | 4. | RARE dividend | |
| 5. | SLV dividend | 10. | SPY dividend | 5. | BMNR dividend | |
Want more examples? SCHV Dividend | SCHX Dividend
