CFA Dividend Type Payments
Although CFA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VictoryShares US 500 Volatility Wtd ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:20 AM ET):
| VictoryShares US 500 Volatility Wtd ETF (CFA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 89.51 | 89.57 | 89.50 | +0.79 | 1K | - | 0.5B |
CFA Dividend-Like Income Using Covered Calls
With CFA at 89.50, 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% | 2.69 | 0.7 |
| 5% | 4.48 | 1.2 |
| 10% | 8.95 | 2.5 |
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:
| 3% Yield On CFA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 20 | 90.00 | 1.20 | 159 | 0.8 | 0.43 (0.5%) | |
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| Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | ARCT dividend | |
| 2. | IBIT dividend | 7. | INTC dividend | 2. | KURA dividend | |
| 3. | GLD dividend | 8. | QQQ dividend | 3. | MP dividend | |
| 4. | SPY dividend | 9. | IWM dividend | 4. | TMQ dividend | |
| 5. | SLV dividend | 10. | AMZN dividend | 5. | NNE dividend | |
Want more examples? CF Dividend | CFFN Dividend
