ZROZ Dividend Type Payments
Although ZROZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PIMCO 25 Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
PIMCO 25 Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund (ZROZ) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
65.00 | 67.43 | 65.35 | -0.63 | 178K | - | 0.0B |
ZROZ Dividend-Like Income Using Covered Calls
With ZROZ at 65.35, 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% | 1.96 | 0.5 |
5% | 3.27 | 0.9 |
10% | 6.54 | 1.8 |
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 ZROZ Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 68.00 | 0.55 | 44 | 1.3 | 0.57 (0.9%) | |
Sep 19 | 68.00 | 1.25 | 79 | 1.6 | 0.57 (0.9%) |
5% Yield On ZROZ Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 68.00 | 0.55 | 44 | 1.3 | 0.57 (0.9%) | |
Sep 19 | 68.00 | 1.25 | 79 | 1.6 | 0.57 (0.9%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | GLD dividend | 1. | QUBT dividend | |
2. | SLV dividend | 7. | AAPL dividend | 2. | COGT dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | IONQ dividend | |
4. | IWM dividend | 9. | IBIT dividend | 4. | TMC dividend | |
5. | TSLA dividend | 10. | QQQ dividend | 5. | SMMT dividend |
Want more examples? ZM Dividend | ZS Dividend