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 Tue 12:25 PM ET):
Invesco S&P 500 Quality ETF (SPHQ) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
58.58 | 58.59 | 58.58 | +0.66 | 430K | - | 2.6B |
SPHQ Dividend-Like Income Using Covered Calls
With SPHQ at 58.58, 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% | 1.76 | 0.5 |
5% | 2.93 | 0.8 |
10% | 5.86 | 1.6 |
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 | |
May 17 | 59.00 | 0.35 | 25 | 1.4 | 0.41 (0.7%) | |
Jun 21 | 59.00 | 0.85 | 60 | 1.4 | 0.41 (0.7%) |
5% Yield On SPHQ Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 59.00 | 0.35 | 25 | 1.4 | 0.41 (0.7%) | |
Jun 21 | 59.00 | 0.85 | 60 | 1.4 | 0.41 (0.7%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | KWEB dividend | 1. | FSLY dividend | |
2. | HYG dividend | 7. | EEM dividend | 2. | EYPT dividend | |
3. | SPY dividend | 8. | TSLA dividend | 3. | CVNA dividend | |
4. | QQQ dividend | 9. | SLV dividend | 4. | DJT dividend | |
5. | FXI dividend | 10. | EWZ dividend | 5. | PENN dividend |
Want more examples? SPHD Dividend | SPHY Dividend