RZG Dividend Type Payments
Although RZG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P Smallcap 600 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 Tue 3:20 PM ET):
| Invesco S&P Smallcap 600 Pure Growth ETF (RZG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 46.01 | 46.07 | 46.03 | -0.03 | 2K | - | 0.2B |
RZG Dividend-Like Income Using Covered Calls
With RZG at 46.03, 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% | 1.38 | 0.4 |
| 5% | 2.30 | 0.6 |
| 10% | 4.60 | 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 RZG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 46.00 | 0.95 | 214 | 0.4 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | TLT dividend | 1. | INFY dividend | |
| 2. | IWM dividend | 7. | FXI dividend | 2. | ELV dividend | |
| 3. | SLV dividend | 8. | AAPL dividend | 3. | ASML dividend | |
| 4. | QQQ dividend | 9. | HYG dividend | 4. | SNAP dividend | |
| 5. | TSLA dividend | 10. | NVDA dividend | 5. | FSLY dividend | |
Want more examples? RYTM Dividend | RZV Dividend
