XSLV Dividend Type Payments

Although XSLV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P SmallCap 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 Fri 2:40 PM ET):

Invesco S&P SmallCap Low Volatility ETF (XSLV)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
42.78	42.89	42.88	+0.34	12K	-	0.9B

XSLV Dividend-Like Income Using Covered Calls

With XSLV at 42.88, 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%	1.29	0.4
5%	2.14	0.6
10%	4.29	1.2

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 XSLV Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 21	43.00	0.25	57	0.4	0.11 (0.3%)
Sep 20	43.00	1.00	148	0.7	0.11 (0.3%)

5% Yield On XSLV Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 20	43.00	1.00	148	0.7	0.11 (0.3%)
Dec 20	43.00	1.45	239	0.6	0.11 (0.3%)

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Want more examples? XSD Dividend | XSMO Dividend