FXB Dividend Type Payments
Although FXB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco CurrencyShares British Pound Sterling Trust to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:40 PM ET):
| Invesco CurrencyShares British Pound Sterling Trust (FXB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 120.59 | 120.63 | 120.46 | -0.52 | 2K | 31 | 0.0B |
FXB Dividend-Like Income Using Covered Calls
With FXB at 120.46, 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% | 3.61 | 1.0 |
| 5% | 6.02 | 1.7 |
| 10% | 12.05 | 3.3 |
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 FXB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 121.00 | 0.30 | 26 | 1.2 | 0.37 (0.3%) | |
| Mar 21 | 121.00 | 0.90 | 89 | 1.0 | 0.37 (0.3%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | INTC dividend | 1. | NMRA dividend | |
| 2. | SLV dividend | 7. | SPY dividend | 2. | RGTI dividend | |
| 3. | AAPL dividend | 8. | TSLA dividend | 3. | QBTS dividend | |
| 4. | EEM dividend | 9. | IWM dividend | 4. | LUNR dividend | |
| 5. | XLF dividend | 10. | TLT dividend | 5. | IONQ dividend | |
Want more examples? FXA Dividend | FXC Dividend
