KBWP Dividend Type Payments

Invesco KBW Property & Casualty Insurance ETF dividend

Although KBWP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco KBW Property & Casualty Insurance ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Invesco KBW Property & Casualty Insurance ETF (KBWP)
Bid Ask Last Change Volume P/E Market Cap
115.59 120.14 117.75 -0.99 35K - 0.2B

KBWP Dividend-Like Income Using Covered Calls

With KBWP at 117.75, 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% 3.53 1.0
5% 5.89 1.6
10% 11.78 3.2

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 KBWP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 120.00 2.50 99 2.4 0.00 (0.0%)
Jan 16 120.00 2.95 190 1.5 0.00 (0.0%)
5% Yield On KBWP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 120.00 2.50 99 2.4 0.00 (0.0%)

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