CGW Dividend Type Payments
Although CGW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P Global Water Index ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:40 AM ET):
| Invesco S&P Global Water Index ETF (CGW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 51.90 | 51.97 | 51.99 | -0.17 | 11K | - | 0.7B |
CGW Dividend-Like Income Using Covered Calls
With CGW at 51.99, 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% | 1.56 | 0.4 |
| 5% | 2.60 | 0.7 |
| 10% | 5.20 | 1.4 |
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 CGW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 20 | 52.47 | 0.85 | 159 | 0.5 | 0.50 (1.0%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | INTC dividend | 1. | AEHR dividend | |
| 2. | SLV dividend | 7. | TSLA dividend | 2. | EVH dividend | |
| 3. | AAPL dividend | 8. | XLF dividend | 3. | SWTX dividend | |
| 4. | SPY dividend | 9. | IWM dividend | 4. | SERV dividend | |
| 5. | EEM dividend | 10. | TLT dividend | 5. | AVXL dividend | |
Want more examples? CGRO Dividend | CHAU Dividend
