SPLV Dividend Type Payments

INVESCO S&P 500 LOW VOLATI dividend

Although SPLV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on INVESCO S&P 500 LOW VOLATI 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 500 LOW VOLATI (SPLV)
Bid Ask Last Change Volume P/E Market Cap
49.58 49.59 49.58 -0.16 199K - 70B

SPLV Dividend-Like Income Using Covered Calls

With SPLV at 49.58, 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% 1.49 0.4
5% 2.48 0.7
10% 4.96 1.4

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 SPLV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 50.00 1.00 207 0.5 0.41 (0.8%)

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