RWK Dividend Type Payments

OPPENHEIMER S&P MID-CAP 400 REVENUE ETF dividend

Although RWK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on OPPENHEIMER S&P MID-CAP 400 REVENUE 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):

OPPENHEIMER S&P MID-CAP 400 REVENUE ETF (RWK)
Bid Ask Last Change Volume P/E Market Cap
56.04 59.61 59.61 -0.24 16K - 3.8B

RWK Dividend-Like Income Using Covered Calls

With RWK at 59.61, 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% 1.79 0.5
5% 2.98 0.8
10% 5.96 1.6

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:

3% Yield On RWK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 60.00 0.20 31 0.6 0.39 (0.7%)
Jan 18 60.00 0.85 94 0.9 0.39 (0.7%)
5% Yield On RWK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 60.00 0.85 94 0.9 0.39 (0.7%)

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