PRF Dividend Type Payments

Although PRF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on INVESCO FTSE RAFI US 1000 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

INVESCO FTSE RAFI US 1000 (PRF)
Bid Ask Last Change Volume P/E Market Cap
116.93 117.04 116.94 +0.81 54K - 51B

PRF Dividend-Like Income Using Covered Calls

With PRF at 116.94, here's a table showing how big the annual "dividend" (ie. 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% 3.51 1.0
5% 5.85 1.6
10% 11.69 3.2

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:

3% Yield On PRF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 117.00 0.75 39 1.8 0.00 (0.0%)
Dec 21 118.00 1.75 130 1.3 0.96 (0.8%)
5% Yield On PRF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 117.00 0.75 39 1.8 0.00 (0.0%)
Dec 21 117.00 2.45 130 1.9 0.00 (0.0%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
2.EEM dividend 7.AABA dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.FB dividend   4.CGC dividend
5.XLF dividend 10.GLD dividend   5.A dividend

Want more examples? PRCP Dividend | PRFT Dividend