PKB Dividend Type Payments
Although PKB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco Building & Construction ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:10 AM ET):
| Invesco Building & Construction ETF (PKB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 95.83 |
96.18 |
96.01 |
+1.13 |
6K |
- |
1.0B |
PKB Dividend-Like Income Using Covered Calls
With PKB at 96.01, 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% |
2.88 |
0.8 |
| 5% |
4.80 |
1.3 |
| 10% |
9.60 |
2.6 |
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 PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
97.00 |
0.70 |
45 |
1.6 |
0.82 (0.9%) |
| Nov 21 |
97.00 |
0.45 |
17 |
2.6 |
0.82 (0.9%) |
| 5% Yield On PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
97.00 |
0.70 |
45 |
1.6 |
0.82 (0.9%) |
| Nov 21 |
97.00 |
0.45 |
17 |
2.6 |
0.82 (0.9%) |
| 10% Yield On PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
97.00 |
0.45 |
17 |
2.6 |
0.82 (0.9%) |
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