PKB Dividend Type Payments
Although PKB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco Building & Construction ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Invesco Building & Construction ETF (PKB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 65.28 |
68.15 |
66.49 |
+0.03 |
18K |
- |
0.7B |
PKB Dividend-Like Income Using Covered Calls
With PKB at 66.49, 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% |
1.99 |
0.5 |
| 5% |
3.32 |
0.9 |
| 10% |
6.65 |
1.8 |
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 PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
70.00 |
0.35 |
30 |
1.2 |
1.85 (2.8%) |
| Sep 19 |
68.00 |
3.10 |
156 |
1.9 |
0.00 (0.0%) |
| 5% Yield On PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
70.00 |
0.35 |
30 |
1.2 |
1.85 (2.8%) |
| Sep 19 |
68.00 |
3.10 |
156 |
1.9 |
0.00 (0.0%) |
| 10% Yield On PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
68.00 |
3.10 |
156 |
1.9 |
0.00 (0.0%) |
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