PDP Dividend Type Payments
Although PDP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco Dorsey Wright Momentum ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Invesco Dorsey Wright Momentum ETF (PDP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 108.91 | 113.54 | 111.08 | +0.34 | 9K | - | 3.2B |
PDP Dividend-Like Income Using Covered Calls
With PDP at 111.08, 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% | 3.33 | 0.9 |
| 5% | 5.55 | 1.5 |
| 10% | 11.11 | 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 PDP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 113.00 | 2.00 | 151 | 1.0 | 0.00 (0.0%) | |
| Jul 18 | 113.00 | 4.00 | 243 | 1.4 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | SAVA dividend | |
| 2. | SPY dividend | 7. | XLF dividend | 2. | CRVS dividend | |
| 3. | EEM dividend | 8. | KWEB dividend | 3. | ANAB dividend | |
| 4. | FXI dividend | 9. | TLT dividend | 4. | APP dividend | |
| 5. | IWM dividend | 10. | KRE dividend | 5. | RCAT dividend | |
Want more examples? PDN Dividend | PDS Dividend
