PEJ Dividend Type Payments
Although PEJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco Leisure and Entertainment 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 Leisure and Entertainment ETF (PEJ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 43.82 | 45.56 | 44.71 | -0.07 | 17K | - | 0.1B |
PEJ Dividend-Like Income Using Covered Calls
With PEJ at 44.71, 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% | 1.34 | 0.4 |
| 5% | 2.24 | 0.6 |
| 10% | 4.47 | 1.2 |
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:
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | EEM dividend | 1. | SNAP dividend | |
| 2. | HYG dividend | 7. | KWEB dividend | 2. | META dividend | |
| 3. | QQQ dividend | 8. | TSLA dividend | 3. | FSLY dividend | |
| 4. | SPY dividend | 9. | SLV dividend | 4. | CVNA dividend | |
| 5. | FXI dividend | 10. | EWZ dividend | 5. | PINS dividend | |
Want more examples? PEGA Dividend | PEN Dividend
