PSCH Dividend Type Payments
Although PSCH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P SmallCap Health Care ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
Invesco S&P SmallCap Health Care ETF (PSCH) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
36.63 | 42.00 | 40.05 | -0.37 | 9K | - | 0.3B |
PSCH Dividend-Like Income Using Covered Calls
With PSCH at 40.05, 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% | 1.20 | 0.3 |
5% | 2.00 | 0.5 |
10% | 4.01 | 1.1 |
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:
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Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | SPY dividend | 6. | TLT dividend | 1. | VNDA dividend | |
2. | IWM dividend | 7. | AAPL dividend | 2. | CVNA dividend | |
3. | QQQ dividend | 8. | FXI dividend | 3. | DJT dividend | |
4. | TSLA dividend | 9. | HYG dividend | 4. | MPW dividend | |
5. | SLV dividend | 10. | NVDA dividend | 5. | UPST dividend |
Want more examples? PSA Dividend | PSEC Dividend