XMMO Dividend Type Payments
Although XMMO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P MidCap Momentum ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:40 PM ET):
Invesco S&P MidCap Momentum ETF (XMMO) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
109.91 |
110.03 |
110.13 |
+1.31 |
42K |
- |
0.2B |
XMMO Dividend-Like Income Using Covered Calls
With XMMO at 110.13, 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% |
3.30 |
0.9 |
5% |
5.51 |
1.5 |
10% |
11.01 |
3.0 |
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 XMMO Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
110.00 |
1.15 |
16 |
7.0 |
0.00 (0.0%) |
Sep 20 |
110.00 |
4.60 |
142 |
3.2 |
0.00 (0.0%) |
5% Yield On XMMO Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
110.00 |
1.15 |
16 |
7.0 |
0.00 (0.0%) |
Sep 20 |
110.00 |
4.60 |
142 |
3.2 |
0.00 (0.0%) |
10% Yield On XMMO Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
110.00 |
1.15 |
16 |
7.0 |
0.00 (0.0%) |
Sep 20 |
110.00 |
4.60 |
142 |
3.2 |
0.00 (0.0%) |
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