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 4:16 PM ET):

Invesco S&P 500 Quality ETF (SPHQ)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
62.50	66.49	65.82	+0.48	808K	-	3.0B

SPHQ Dividend-Like Income Using Covered Calls

With SPHQ at 65.82, 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%	1.97	0.5
5%	3.29	0.9
10%	6.58	1.8

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
Oct 17	67.00	1.55	172	0.9	0.51 (0.8%)
Jul 18	67.00	1.20	81	1.5	0.51 (0.8%)

5% Yield On SPHQ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	68.00	1.85	172	1.1	1.51 (2.3%)
Jul 18	67.00	1.20	81	1.5	0.51 (0.8%)

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Want more examples? SPHD Dividend | SPHY Dividend