DBE Dividend Type Payments

INVESCO DB ENERGY dividend

Although DBE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on INVESCO DB ENERGY 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):

INVESCO DB ENERGY (DBE)
Bid Ask Last Change Volume P/E Market Cap
17.12 17.56 17.33 -0.23 106K - 4.5B

DBE Dividend-Like Income Using Covered Calls

With DBE at 17.33, 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% 0.52 0.1
5% 0.87 0.2
10% 1.73 0.5

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 DBE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 18.00 0.05 30 0.2 0.44 (2.5%)
Jan 18 19.00 0.15 93 0.2 1.44 (8.3%)
5% Yield On DBE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 18.00 0.35 93 0.4 0.44 (2.5%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
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4.PBR dividend 9.IWM dividend   4.SKX dividend
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Want more examples? DBD Dividend | DBEF Dividend