SPHQ Dividend Type Payments
Although SPHQ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P 500 Quality 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):
| Invesco S&P 500 Quality ETF (SPHQ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 73.28 | 74.13 | 73.72 | +0.46 | 878K | - | 3.3B |
SPHQ Dividend-Like Income Using Covered Calls
With SPHQ at 73.72, 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% | 2.21 | 0.6 |
| 5% | 3.69 | 1.0 |
| 10% | 7.37 | 2.0 |
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 SPHQ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 75.00 | 0.50 | 73 | 0.7 | 0.87 (1.2%) | |
| Apr 17 | 74.00 | 1.60 | 164 | 0.9 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | LYFT dividend | |
| 2. | KVUE dividend | 7. | INTC dividend | 2. | LCID dividend | |
| 3. | NVDA dividend | 8. | ASST dividend | 3. | SOUN dividend | |
| 4. | SLV dividend | 9. | HYG dividend | 4. | TTD dividend | |
| 5. | GLD dividend | 10. | SPY dividend | 5. | CELH dividend | |
Want more examples? SPHD Dividend | SPHY Dividend
