SHLD Dividend Type Payments

Although SHLD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X Funds Global X Defense Tech ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Global X Funds Global X Defense Tech ETF (SHLD)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
54.28	54.66	54.43	+0.57	538K	-	0.0B

SHLD Dividend-Like Income Using Covered Calls

With SHLD at 54.43, 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%	1.63	0.4
5%	2.72	0.7
10%	5.44	1.5

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 SHLD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 18	55.00	1.10	64	1.7	0.34 (0.6%)
Sep 19	55.00	2.50	127	2.0	0.34 (0.6%)

5% Yield On SHLD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 18	55.00	1.10	64	1.7	0.34 (0.6%)
Sep 19	55.00	2.50	127	2.0	0.34 (0.6%)

10% Yield On SHLD Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 18	55.00	1.10	64	1.7	0.34 (0.6%)
Sep 19	55.00	2.50	127	2.0	0.34 (0.6%)

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Want more examples? SHEN Dividend | SHM Dividend