PXJ Dividend Type Payments
Although PXJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco Oil & Gas Services ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 11:30 AM ET):
| Invesco Oil & Gas Services ETF (PXJ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 30.23 | 30.26 | 30.25 | +0.38 | 3K | - | 0.0B |
PXJ Dividend-Like Income Using Covered Calls
With PXJ at 30.25, 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% | 0.91 | 0.2 |
| 5% | 1.51 | 0.4 |
| 10% | 3.03 | 0.8 |
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:
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | IOVA dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | AAOI dividend | |
| 3. | AAPL dividend | 8. | XLF dividend | 3. | DNA dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | SERV dividend | |
| 5. | EEM dividend | 10. | IWM dividend | 5. | RUM dividend | |
Want more examples? PXI Dividend | PXLW Dividend
