PFFD Dividend Type Payments
Although PFFD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X U.S. Preferred ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Global X U.S. Preferred ETF (PFFD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 18.50 | 18.72 | 18.56 | -0.03 | 545K | - | 2.2B |
PFFD Dividend-Like Income Using Covered Calls
With PFFD at 18.56, 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% | 0.56 | 0.2 |
| 5% | 0.93 | 0.3 |
| 10% | 1.86 | 0.5 |
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 Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | ALT dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | RUN dividend | |
| 3. | QQQ dividend | 8. | TLT dividend | 3. | BBAI dividend | |
| 4. | TSLA dividend | 9. | AAPL dividend | 4. | CAPR dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | COGT dividend | |
Want more examples? PFFA Dividend | PFFL Dividend
