XMLV Dividend Type Payments
Although XMLV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P MidCap Low Volatility ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
Invesco S&P MidCap Low Volatility ETF (XMLV) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
52.62 | 54.61 | 53.59 | +0.22 | 23K | - | 1.3B |
XMLV Dividend-Like Income Using Covered Calls
With XMLV at 53.59, 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% | 1.61 | 0.4 |
5% | 2.68 | 0.7 |
10% | 5.36 | 1.5 |
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:
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | HYG dividend | 6. | KWEB dividend | 1. | VNDA dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | CVNA dividend | |
3. | FXI dividend | 8. | SLV dividend | 3. | DJT dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | MPW dividend | |
5. | QQQ dividend | 10. | EWZ dividend | 5. | UPST dividend |
Want more examples? XMHQ Dividend | XMMO Dividend