ARKW Dividend Type Payments

Although ARKW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ARKANSAS WEB X 0 ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

ARKANSAS WEB X 0 ETF (ARKW)
Bid Ask Last Change Volume P/E Market Cap
51.43 52.10 51.70 +0.70 111K - 6.3B

ARKW Dividend-Like Income Using Covered Calls

With ARKW at 51.70, here's a table showing how big the annual "dividend" (ie. 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% 1.55 0.4
5% 2.59 0.7
10% 5.17 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 ARKW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 53.00 0.20 26 0.8 0.90 (1.7%)
Dec 21 54.00 0.70 61 1.1 1.90 (3.7%)
5% Yield On ARKW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 53.00 0.20 26 0.8 0.90 (1.7%)
Dec 21 54.00 0.70 61 1.1 1.90 (3.7%)
10% Yield On ARKW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 52.00 0.50 26 1.5 0.00 (0.0%)
Dec 21 53.00 1.10 61 1.8 0.90 (1.7%)

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