FXB Dividend Type Payments
Although FXB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco CurrencyShares British Pound Sterling Trust 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 CurrencyShares British Pound Sterling Trust (FXB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 127.71 | 127.79 | 127.76 | +0.23 | 6K | - | 0.1B |
FXB Dividend-Like Income Using Covered Calls
With FXB at 127.76, 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% | 3.83 | 1.1 |
| 5% | 6.39 | 1.8 |
| 10% | 12.78 | 3.5 |
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 FXB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 128.00 | 0.55 | 46 | 1.2 | 0.21 (0.2%) | |
| Dec 19 | 130.00 | 1.50 | 137 | 1.1 | 2.21 (1.7%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | GLD dividend | 1. | LFMD dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | MBX dividend | |
| 3. | IWM dividend | 8. | AMZN dividend | 3. | SNAP dividend | |
| 4. | SPY dividend | 9. | QQQ dividend | 4. | RIVN dividend | |
| 5. | IBIT dividend | 10. | AAPL dividend | 5. | BBIO dividend | |
Want more examples? FXA Dividend | FXC Dividend
