SPGP Dividend Type Payments
Although SPGP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P 500 GARP ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Invesco S&P 500 GARP ETF (SPGP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 95.83 | 101.65 | 96.79 | +0.19 | 155K | - | 0.4B |
SPGP Dividend-Like Income Using Covered Calls
With SPGP at 96.79, 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% | 2.90 | 0.8 |
| 5% | 4.84 | 1.3 |
| 10% | 9.68 | 2.7 |
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 SPGP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 102.00 | 0.20 | 18 | 1.1 | 0.35 (0.4%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | RDDT dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | WGS dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | SNAP dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | ZETA dividend | |
| 5. | QQQ dividend | 10. | IBIT dividend | 5. | ENVX dividend | |
Want more examples? SPGM Dividend | SPH Dividend
