CGW Dividend Type Payments
Although CGW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P Global Water Index ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:40 AM ET):
| Invesco S&P Global Water Index ETF (CGW) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 61.66 |
61.73 |
61.66 |
+0.52 |
3K |
- |
0.8B |
CGW Dividend-Like Income Using Covered Calls
With CGW at 61.66, 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% |
1.85 |
0.5 |
| 5% |
3.08 |
0.8 |
| 10% |
6.17 |
1.7 |
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 CGW Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
62.00 |
1.40 |
187 |
0.7 |
0.27 (0.4%) |
| Jun 20 |
61.47 |
0.35 |
5 |
1.8 |
0.00 (0.0%) |
| 5% Yield On CGW Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
61.47 |
0.35 |
5 |
1.8 |
0.00 (0.0%) |
| 10% Yield On CGW Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
61.47 |
0.35 |
5 |
1.8 |
0.00 (0.0%) |
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