CSD Dividend Type Payments
Although CSD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P Spin-Off ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
Invesco S&P Spin-Off ETF (CSD) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
34.74 | 104.20 | 69.45 | +1.78 | 0K | - | 0.8B |
CSD Dividend-Like Income Using Covered Calls
With CSD at 69.45, 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% | 2.08 | 0.6 |
5% | 3.47 | 1.0 |
10% | 6.95 | 1.9 |
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:
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | KWEB dividend | 1. | CIFR dividend | |
2. | HYG dividend | 7. | EEM dividend | 2. | FSLY dividend | |
3. | SPY dividend | 8. | TSLA dividend | 3. | ENPH dividend | |
4. | QQQ dividend | 9. | SLV dividend | 4. | SNAP dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | CGC dividend |
Want more examples? CSCO Dividend | CSGP Dividend