PJP Dividend Type Payments
Although PJP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco Pharmaceuticals 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):
| Invesco Pharmaceuticals ETF (PJP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 74.15 | 77.49 | 76.03 | -0.51 | 34K | - | 0.9B |
PJP Dividend-Like Income Using Covered Calls
With PJP at 76.03, 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% | 2.28 | 0.6 |
| 5% | 3.80 | 1.0 |
| 10% | 7.60 | 2.1 |
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 PJP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 78.00 | 0.30 | 33 | 0.9 | 0.51 (0.7%) | |
| Nov 15 | 78.00 | 1.40 | 215 | 0.7 | 0.51 (0.7%) | |
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| Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | TLT dividend | 1. | GL dividend | |
| 2. | IWM dividend | 7. | TSLA dividend | 2. | SNAP dividend | |
| 3. | SLV dividend | 8. | AAPL dividend | 3. | NOVA dividend | |
| 4. | QQQ dividend | 9. | HYG dividend | 4. | KOS dividend | |
| 5. | FXI dividend | 10. | EEM dividend | 5. | RNA dividend | |
Want more examples? PIZ Dividend | PJT Dividend
