SPMO Dividend Type Payments
Although SPMO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P 500 Momentum ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:55 AM ET):
| Invesco S&P 500 Momentum ETF (SPMO) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 119.69 |
119.70 |
119.69 |
+1.16 |
701K |
- |
0.0B |
SPMO Dividend-Like Income Using Covered Calls
With SPMO at 119.69, 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% |
3.59 |
1.0 |
| 5% |
5.98 |
1.6 |
| 10% |
11.97 |
3.3 |
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 SPMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
120.00 |
2.20 |
40 |
5.5 |
0.30 (0.3%) |
| Nov 21 |
120.00 |
1.35 |
12 |
11.3 |
0.30 (0.3%) |
| 5% Yield On SPMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
120.00 |
2.20 |
40 |
5.5 |
0.30 (0.3%) |
| Nov 21 |
120.00 |
1.35 |
12 |
11.3 |
0.30 (0.3%) |
| 10% Yield On SPMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
120.00 |
2.20 |
40 |
5.5 |
0.30 (0.3%) |
| Nov 21 |
120.00 |
1.35 |
12 |
11.3 |
0.30 (0.3%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
