RFV Dividend Type Payments
Although RFV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P Midcap 400 Pure Value ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Invesco S&P Midcap 400 Pure Value ETF (RFV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 105.78 | 118.56 | 112.53 | +0.16 | 9K | - | 0.1B |
RFV Dividend-Like Income Using Covered Calls
With RFV at 112.53, 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% | 3.38 | 0.9 |
| 5% | 5.63 | 1.5 |
| 10% | 11.25 | 3.1 |
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:
| 3% Yield On RFV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 20 | 119.00 | 1.45 | 150 | 1.0 | 0.44 (0.4%) | |
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | EEM dividend | 1. | SNAP dividend | |
| 2. | HYG dividend | 7. | KWEB dividend | 2. | META dividend | |
| 3. | QQQ dividend | 8. | TSLA dividend | 3. | FSLY dividend | |
| 4. | SPY dividend | 9. | SLV dividend | 4. | CVNA dividend | |
| 5. | FXI dividend | 10. | EWZ dividend | 5. | PINS dividend | |
Want more examples? RFL Dividend | RGA Dividend
