SMLF Dividend Type Payments
Although SMLF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares U.S. Small-Cap Equity Factor ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| iShares U.S. Small-Cap Equity Factor ETF (SMLF) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 69.73 | 70.60 | 70.02 | +0.99 | 152K | - | 0.1B |
SMLF Dividend-Like Income Using Covered Calls
With SMLF at 70.02, 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% | 2.10 | 0.6 |
| 5% | 3.50 | 1.0 |
| 10% | 7.00 | 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 SMLF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 71.00 | 1.00 | 151 | 0.7 | 0.40 (0.6%) | |
| Mar 20 | 71.00 | 1.85 | 242 | 0.8 | 0.40 (0.6%) | |
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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. | DNUT dividend | |
| 4. | IWM dividend | 9. | AAPL dividend | 4. | RDDT dividend | |
| 5. | SPY dividend | 10. | QQQ dividend | 5. | ENPH dividend | |
Want more examples? SMHI Dividend | SMLL Dividend
