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 Mon 12:55 PM ET):
| Charles Schwab Corporation (The) (SCHW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 96.72 | 96.74 | 96.72 | +0.92 | 5.1M | 29 | 179B |
SCHW Dividend-Like Income Using Covered Calls
With SCHW at 96.72, 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% | 2.90 | 0.8 |
| 5% | 4.84 | 1.3 |
| 10% | 9.67 | 2.6 |
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 | |
| Aug 1 | 100.00 | 0.29 | 12 | 2.4 | 3.26 (3.4%) | |
| Aug 8 | 100.00 | 0.49 | 19 | 2.6 | 3.26 (3.4%) | |
| 5% Yield On SCHW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 100.00 | 0.29 | 12 | 2.4 | 3.26 (3.4%) | |
| Aug 8 | 100.00 | 0.49 | 19 | 2.6 | 3.26 (3.4%) | |
| 10% Yield On SCHW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 97.00 | 1.23 | 12 | 10.3 | 0.26 (0.3%) | |
| Aug 8 | 97.00 | 1.55 | 19 | 8.2 | 0.26 (0.3%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | MBX dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | EOSE dividend | |
| 3. | GLD dividend | 8. | AMZN dividend | 3. | CELC dividend | |
| 4. | IWM dividend | 9. | AAPL dividend | 4. | OPEN dividend | |
| 5. | SPY dividend | 10. | QQQ dividend | 5. | PRAX dividend | |
Want more examples? SCHV Dividend | SCHX Dividend
