RYH Dividend Type Payments

Although RYH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P 500 Equal Weight 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 Mon 4:16 PM ET):

Invesco S&P 500 Equal Weight Health Care ETF (RYH)
Bid Ask Last Change Volume P/E Market Cap
169.90 180.74 180.74 -4.11 41K - 0.0B

RYH Dividend-Like Income Using Covered Calls

With RYH at 180.74, 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% 5.42 1.5
5% 9.04 2.5
10% 18.07 5.0

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 RYH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 186.00 0.15 5 3.0 5.26 (2.9%)
Jan 18 190.00 0.80 33 2.4 9.26 (5.1%)
5% Yield On RYH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 186.00 0.15 5 3.0 5.26 (2.9%)
Jan 18 189.00 1.20 33 3.6 8.26 (4.6%)
10% Yield On RYH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 185.00 1.95 33 5.9 4.26 (2.4%)
Apr 18 184.00 6.30 123 5.1 3.26 (1.8%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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Want more examples? RYF Dividend | RYI Dividend