SPHD Dividend Type Payments

Although SPHD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on INVESCO S&P HIGH DIVIDEND LOW VTLY to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:10 AM ET):

INVESCO S&P HIGH DIVIDEND LOW VTLY (SPHD)
Bid Ask Last Change Volume P/E Market Cap
42.16 42.17 42.17 -0.11 56K - 26B

SPHD Dividend-Like Income Using Covered Calls

With SPHD at 42.17, 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% 1.27 0.3
5% 2.11 0.6
10% 4.22 1.2

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 SPHD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 42.00 0.40 32 0.7 0.00 (0.0%)
Dec 21 43.00 0.50 123 0.4 0.83 (2.0%)
5% Yield On SPHD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 42.00 0.40 32 0.7 0.00 (0.0%)
Dec 21 42.00 1.05 123 0.7 0.00 (0.0%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.SPY dividend 6.GE dividend   1.MOMO dividend
2.EEM dividend 7.GLD dividend   2.LB dividend
3.SPX dividend 8.FB dividend   3.GPS dividend
4.QQQ dividend 9.IWM dividend   4.AKRX dividend
5.XLF dividend 10.GDX dividend   5.GERN dividend

Want more examples? SPHB Dividend | SPHOME Dividend