IDHQ Dividend Type Payments
Although IDHQ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P International Developed Quality ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:25 PM ET):
| Invesco S&P International Developed Quality ETF (IDHQ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 32.55 | 32.72 | 32.64 | +0.06 | 33K | - | 0.0B |
IDHQ Dividend-Like Income Using Covered Calls
With IDHQ at 32.64, 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% | 0.98 | 0.3 |
| 5% | 1.63 | 0.4 |
| 10% | 3.26 | 0.9 |
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 Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | MBX dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | EOSE dividend | |
| 3. | GLD dividend | 8. | AMZN dividend | 3. | CELC dividend | |
| 4. | IWM dividend | 9. | AAPL dividend | 4. | RDDT dividend | |
| 5. | SPY dividend | 10. | QQQ dividend | 5. | CHTR dividend | |
Want more examples? IDEV Dividend | IDLV Dividend
