PAVE Dividend Type Payments
Although PAVE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X U.S. Infrastructure Development ETF 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):
Global X U.S. Infrastructure Development ETF (PAVE) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
36.80 | 38.20 | 37.93 | +0.53 | 1.4M | - | 3.5B |
PAVE Dividend-Like Income Using Covered Calls
With PAVE at 37.93, 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% | 1.14 | 0.3 |
5% | 1.90 | 0.5 |
10% | 3.79 | 1.0 |
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 PAVE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 39.00 | 0.15 | 16 | 0.9 | 0.80 (2.1%) | |
Sep 20 | 39.00 | 1.20 | 142 | 0.8 | 0.80 (2.1%) |
5% Yield On PAVE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 39.00 | 0.15 | 16 | 0.9 | 0.80 (2.1%) | |
Sep 20 | 39.00 | 1.20 | 142 | 0.8 | 0.80 (2.1%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | COIN dividend | |
2. | QQQ dividend | 7. | KWEB dividend | 2. | DKNG dividend | |
3. | HYG dividend | 8. | TSLA dividend | 3. | FTNT dividend | |
4. | SPY dividend | 9. | SLV dividend | 4. | EXPE dividend | |
5. | FXI dividend | 10. | AMZN dividend | 5. | RKT dividend |
Want more examples? PATK Dividend | PAY Dividend