TECB Dividend Type Payments
Although TECB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares U.S. Tech Breakthrough Multisector ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 3:05 PM ET):
iShares U.S. Tech Breakthrough Multisector ETF (TECB) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
52.32 | 52.34 | 52.30 | +0.32 | 13K | - | 0.0B |
TECB Dividend-Like Income Using Covered Calls
With TECB at 52.30, 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% | 1.57 | 0.4 |
5% | 2.62 | 0.7 |
10% | 5.23 | 1.4 |
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 TECB Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 17 | 53.00 | 1.20 | 189 | 0.6 | 0.66 (1.3%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | CPRI dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | DJT dividend | |
3. | FXI dividend | 8. | TSLA dividend | 3. | NMRA dividend | |
4. | SPY dividend | 9. | SMCI dividend | 4. | SAVA dividend | |
5. | QQQ dividend | 10. | HYG dividend | 5. | SEDG dividend |
Want more examples? TEAM Dividend | TECH Dividend