PSEP Dividend Type Payments
Although PSEP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Innovator U.S. Equity Power Buffer ETF - September to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Innovator U.S. Equity Power Buffer ETF - September (PSEP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 35.49 | 43.03 | 39.38 | +0.08 | 4K | - | 0.0B |
PSEP Dividend-Like Income Using Covered Calls
With PSEP at 39.38, 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% | 1.18 | 0.3 |
| 5% | 1.97 | 0.5 |
| 10% | 3.94 | 1.1 |
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:
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| Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | ACHR dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | CRVS dividend | |
| 3. | XLF dividend | 8. | TLT dividend | 3. | IONQ dividend | |
| 4. | EEM dividend | 9. | KWEB dividend | 4. | PATH dividend | |
| 5. | FXI dividend | 10. | AAPL dividend | 5. | IOT dividend | |
Want more examples? PSEC Dividend | PSI Dividend
