PSR Dividend Type Payments

Invesco Active U.S. Real Estate Fund dividend

Although PSR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco Active U.S. Real Estate Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:00 PM ET):

Invesco Active U.S. Real Estate Fund (PSR)
Bid Ask Last Change Volume P/E Market Cap
90.76 90.87 90.75 +0.76 2K - 0.0B

PSR Dividend-Like Income Using Covered Calls

With PSR at 90.75, 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% 2.72 0.7
5% 4.54 1.2
10% 9.08 2.5

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 PSR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 91.00 0.25 18 1.4 0.13 (0.1%)
Oct 17 91.00 2.85 172 1.7 0.13 (0.1%)
5% Yield On PSR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 91.00 0.25 18 1.4 0.13 (0.1%)
Oct 17 91.00 2.85 172 1.7 0.13 (0.1%)
10% Yield On PSR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 91.00 1.35 53 2.5 0.13 (0.1%)

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