TDTT Dividend Type Payments
Although TDTT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on FlexShares iBoxx 3 Year Target Duration TIPS Index Fund 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):
| FlexShares iBoxx 3 Year Target Duration TIPS Index Fund (TDTT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 24.20 | 24.23 | 24.20 | 0.00 | 275K | - | 1.8B |
TDTT Dividend-Like Income Using Covered Calls
With TDTT at 24.20, 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% | 0.73 | 0.2 |
| 5% | 1.21 | 0.3 |
| 10% | 2.42 | 0.7 |
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:
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | COGT dividend | |
| 2. | SLV dividend | 7. | TSLA dividend | 2. | ENPH dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | SERV dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | CRWV dividend | |
| 5. | TLT dividend | 10. | CLSK dividend | 5. | RCAT dividend | |
Want more examples? TDTF Dividend | TDV Dividend
