XMHQ Dividend Type Payments

Although XMHQ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P MidCap 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 MidCap Quality ETF (XMHQ)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
103.95	104.81	104.61	-0.24	212K	-	0.1B

XMHQ Dividend-Like Income Using Covered Calls

With XMHQ at 104.61, 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%	3.14	0.9
5%	5.23	1.4
10%	10.46	2.9

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 XMHQ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 16	105.00	0.45	25	1.8	0.19 (0.2%)
Jun 18	105.00	4.00	178	2.2	0.19 (0.2%)

5% Yield On XMHQ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 16	105.00	0.45	25	1.8	0.19 (0.2%)
Jun 18	105.00	4.00	178	2.2	0.19 (0.2%)

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Want more examples? XME Dividend | XMLV Dividend