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 Fri 4:16 PM ET):
| Invesco S&P 500 Quality ETF (SPHQ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 69.57 | 71.15 | 69.86 | -1.24 | 1.7M | - | 3.2B |
SPHQ Dividend-Like Income Using Covered Calls
With SPHQ at 69.86, 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% | 2.10 | 0.6 |
| 5% | 3.49 | 1.0 |
| 10% | 6.99 | 1.9 |
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 | 71.00 | 1.30 | 127 | 0.9 | 0.00 (0.0%) | |
| Jan 16 | 71.00 | 1.45 | 218 | 0.6 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | AES dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | DYN dividend | |
| 3. | QQQ dividend | 8. | EEM dividend | 3. | RUN dividend | |
| 4. | SLV dividend | 9. | FXI dividend | 4. | ALT dividend | |
| 5. | IWM dividend | 10. | TLT dividend | 5. | CAPR dividend | |
Want more examples? SPHD Dividend | SPHY Dividend
