SHY Dividend Type Payments
Although SHY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 1-3 Year Treasury Bond ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:10 AM ET):
| iShares 1-3 Year Treasury Bond ETF (SHY) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 82.83 | 82.84 | 82.83 | +0.03 | 414K | - | 20B |
SHY Dividend-Like Income Using Covered Calls
With SHY at 82.83, 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% | 2.48 | 0.7 |
| 5% | 4.14 | 1.1 |
| 10% | 8.28 | 2.3 |
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:
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TLT dividend | 1. | COGT dividend | |
| 2. | SLV dividend | 7. | TSLA dividend | 2. | CIFR dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | ENVX dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | QBTS dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | ENPH dividend | |
Want more examples? SHW Dividend | SHYF Dividend
