RFG Dividend Type Payments
Although RFG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P Midcap 400 Pure Growth ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:05 AM ET):
| Invesco S&P Midcap 400 Pure Growth ETF (RFG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 48.57 | 48.63 | 48.59 | -0.06 | 12K | - | 1.7B |
RFG Dividend-Like Income Using Covered Calls
With RFG at 48.59, 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% | 1.46 | 0.4 |
| 5% | 2.43 | 0.7 |
| 10% | 4.86 | 1.3 |
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 RFG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 21 | 49.00 | 0.65 | 145 | 0.4 | 0.37 (0.8%) | |
| Feb 20 | 49.00 | 1.30 | 236 | 0.6 | 0.37 (0.8%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TLT dividend | 1. | EOSE dividend | |
| 2. | SLV dividend | 7. | TSLA dividend | 2. | COGT dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | CIFR dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | ENVX dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | ENPH dividend | |
Want more examples? RFFC Dividend | RFIL Dividend
