SHLD Dividend Type Payments

Global X Defense Tech ETF dividend

Although SHLD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on 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 Mon 4:16 PM ET):

Global X Defense Tech ETF (SHLD)
Bid Ask Last Change Volume P/E Market Cap
60.50 61.35 60.74 -1.66 808K - 0.0B

SHLD Dividend-Like Income Using Covered Calls

With SHLD at 60.74, 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% 1.82 0.5
5% 3.04 0.8
10% 6.07 1.7

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 62.00 0.70 19 3.7 0.65 (1.1%)
Jan 16 62.00 1.35 47 2.9 0.65 (1.1%)
5% Yield On SHLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 62.00 0.70 19 3.7 0.65 (1.1%)
Jan 16 62.00 1.35 47 2.9 0.65 (1.1%)
10% Yield On SHLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 62.00 0.70 19 3.7 0.65 (1.1%)
Jan 16 62.00 1.35 47 2.9 0.65 (1.1%)

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