TLH Dividend Type Payments
Although TLH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 10-20 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 Fri 4:16 PM ET):
iShares 10-20 Year Treasury Bond ETF (TLH) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
109.14 | 110.68 | 109.90 | -0.07 | 552K | - | 0.4B |
TLH Dividend-Like Income Using Covered Calls
With TLH at 109.90, 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% | 3.30 | 0.9 |
5% | 5.50 | 1.5 |
10% | 10.99 | 3.0 |
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 TLH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 111.00 | 1.45 | 57 | 2.5 | 0.32 (0.3%) | |
Oct 18 | 111.00 | 0.70 | 29 | 2.4 | 0.32 (0.3%) |
5% Yield On TLH Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 111.00 | 1.45 | 57 | 2.5 | 0.32 (0.3%) | |
Oct 18 | 111.00 | 0.70 | 29 | 2.4 | 0.32 (0.3%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | SLV dividend | 1. | RLAY dividend | |
2. | IWM dividend | 7. | GLD dividend | 2. | LUNR dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | MARA dividend | |
4. | QQQ dividend | 9. | EEM dividend | 4. | CPRI dividend | |
5. | HYG dividend | 10. | AAPL dividend | 5. | MBLY dividend |
Want more examples? TKR Dividend | TLN Dividend