TLT Dividend Type Payments

Although TLT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares 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 Mon 1:25 PM ET):

iShares 20+ Year Treasury Bond ETF (TLT)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
89.79	89.80	89.80	+0.19	14.1M	-	11B

TLT Dividend-Like Income Using Covered Calls

With TLT at 89.80, 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%	2.69	0.7
5%	4.49	1.2
10%	8.98	2.5

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 TLT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 4	89.50	1.71	40	3.5	0.00 (0.0%)
Mar 7	89.50	0.93	12	5.3	0.00 (0.0%)

5% Yield On TLT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 4	89.50	1.71	40	3.5	0.00 (0.0%)
Mar 7	89.50	0.93	12	5.3	0.00 (0.0%)

10% Yield On TLT Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 4	89.50	1.71	40	3.5	0.00 (0.0%)
Mar 7	89.50	0.93	12	5.3	0.00 (0.0%)

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Want more examples? TLSA Dividend | TLTD Dividend