Invesco Dividend Achievers ETF (PFM) Covered Calls

PFM is an exchange-traded fund that tracks an index of U.S. companies that have increased their annual regular cash dividends for at least ten consecutive years. By focusing on firms with a proven commitment to dividend growth, the fund seeks to provide a balance of income and capital appreciation, emphasizing management discipline and financial strength in dividend-paying U.S. equities.

You can sell covered calls on Invesco Dividend Achievers ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for PFM (prices last updated Thu 4:16 PM ET):

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The Invesco Dividend Achievers ETF (PFM) follows a quality-driven strategy by targeting companies in the "Dividend Achievers" index. The fund’s inclusion criteria are stringent: companies must demonstrate a history of at least a decade of annual dividend increases. This methodology filters out speculative firms and focuses on mature, cash-flow-positive corporations that prioritize shareholder returns through consistent, long-term payout growth.

Because the fund selects companies based on their dividend history rather than market capitalization, its sector weightings can deviate from traditional broad-market benchmarks. PFM tends to be overweight in sectors like consumer staples, industrials, and healthcare, which historically have had the financial stability to sustain long-term dividend hikes. This tilt provides a defensive characteristic, as these firms often operate in less cyclical industries that can weather economic downturns more effectively.

Competitive Landscape

PFM operates in the popular "dividend growth" corner of the ETF market. Its primary competitor is the Vanguard Dividend Appreciation ETF, which is a massive benchmark in this space with a similar focus on companies with growing dividend records. Other direct alternatives include the SPDR S&P Dividend ETF and the iShares Core Dividend Growth ETF, both of which use distinct quantitative screens to identify sustainable dividend growers.

Investors also frequently compare these specialized growth funds to broader, market-cap-weighted dividend ETFs like the Schwab US Dividend Equity ETF. The choice between PFM and these competitors often comes down to the specific index rules—such as the minimum number of years required for dividend growth—that best align with an investor's risk tolerance and income goals.

Strategic Outlook and Investment Usage

PFM is designed for long-term investors looking for a "core" equity holding that combines the growth potential of stocks with the discipline of dividend-paying businesses. Unlike high-yield funds that may favor companies with stagnant growth or high debt loads, PFM explicitly targets companies whose business models are expanding, as evidenced by their ability to increase payouts over time.

Strategic investors use PFM to build a "compounding engine" within their portfolios. Because the underlying holdings are typically large, well-capitalized firms, the fund is often used as a hedge against inflation and a stabilizer during periods of high market volatility. With solid liquidity and an active options market, it is also a preferred vehicle for investors looking to generate additional income through covered call strategies while maintaining exposure to a high-quality portfolio of dividend growers.

Want more examples? PFLT Covered Calls | PFS Covered Calls