PBJ Dividend Type Payments
Although PBJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco Food & Beverage ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
Invesco Food & Beverage ETF (PBJ) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
47.95 | 49.65 | 48.78 | +0.27 | 16K | - | 0.2B |
PBJ Dividend-Like Income Using Covered Calls
With PBJ at 48.78, 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% | 1.46 | 0.4 |
5% | 2.44 | 0.7 |
10% | 4.88 | 1.3 |
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 PBJ Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Sep 20 | 50.00 | 0.95 | 178 | 0.5 | 0.35 (0.7%) |
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Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | TLT dividend | 1. | MRNS dividend | |
2. | SPY dividend | 7. | HYG dividend | 2. | SOUN dividend | |
3. | QQQ dividend | 8. | AAPL dividend | 3. | DWAC dividend | |
4. | SLV dividend | 9. | EEM dividend | 4. | HUT dividend | |
5. | FXI dividend | 10. | TSLA dividend | 5. | NOVA dividend |
Want more examples? PBI Dividend | PBPB Dividend