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 Fri 4:16 PM ET):
| Invesco S&P 500 Momentum ETF (SPMO) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 113.00 |
113.60 |
113.23 |
-2.46 |
2.7M |
- |
0.0B |
SPMO Dividend-Like Income Using Covered Calls
With SPMO at 113.23, 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% |
3.40 |
0.9 |
| 5% |
5.66 |
1.6 |
| 10% |
11.32 |
3.1 |
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 |
| Aug 15 |
115.00 |
0.55 |
15 |
3.7 |
1.40 (1.2%) |
| Oct 17 |
114.00 |
3.00 |
78 |
3.8 |
0.40 (0.4%) |
| 5% Yield On SPMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
115.00 |
0.55 |
15 |
3.7 |
1.40 (1.2%) |
| Oct 17 |
114.00 |
3.00 |
78 |
3.8 |
0.40 (0.4%) |
| 10% Yield On SPMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
115.00 |
0.55 |
15 |
3.7 |
1.40 (1.2%) |
| Oct 17 |
114.00 |
3.00 |
78 |
3.8 |
0.40 (0.4%) |
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