PZA Dividend Type Payments
Although PZA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco National AMT-Free Municipal Bond ETFo to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 9:55 AM ET):
| Invesco National AMT-Free Municipal Bond ETFo (PZA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 23.38 | 23.39 | 23.39 | 0.00 | 25K | - | 1.2B |
PZA Dividend-Like Income Using Covered Calls
With PZA at 23.39, 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% | 0.70 | 0.2 |
| 5% | 1.17 | 0.3 |
| 10% | 2.34 | 0.6 |
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:
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | GLD dividend | 1. | IONQ dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | ARCT dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | OKLO dividend | |
| 4. | SLV dividend | 9. | INTC dividend | 4. | FIP dividend | |
| 5. | HYG dividend | 10. | QQQ dividend | 5. | APLD dividend | |
Want more examples? PYZ Dividend | PZT Dividend
