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 |
| 68.30 | 68.52 | 68.31 | +0.61 | 882K | - | 0.0B |
SHLD Dividend-Like Income Using Covered Calls
With SHLD at 68.31, 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% | 2.05 | 0.6 |
| 5% | 3.42 | 0.9 |
| 10% | 6.83 | 1.9 |
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 | |
| Dec 19 | 69.00 | 2.05 | 50 | 4.1 | 0.48 (0.7%) | |
| Nov 21 | 69.00 | 1.10 | 22 | 5.0 | 0.48 (0.7%) | |
| 5% Yield On SHLD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 69.00 | 2.05 | 50 | 4.1 | 0.48 (0.7%) | |
| Nov 21 | 69.00 | 1.10 | 22 | 5.0 | 0.48 (0.7%) | |
| 10% Yield On SHLD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 69.00 | 2.05 | 50 | 4.1 | 0.48 (0.7%) | |
| Nov 21 | 69.00 | 1.10 | 22 | 5.0 | 0.48 (0.7%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | INTC dividend | 1. | GHRS dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | IREN dividend | |
| 3. | NVDA dividend | 8. | ASST dividend | 3. | SRPT dividend | |
| 4. | SLV dividend | 9. | EEM dividend | 4. | UPST dividend | |
| 5. | GLD dividend | 10. | HYG dividend | 5. | HUT dividend | |
Want more examples? SHEN Dividend | SHM Dividend
