RPG Dividend Type Payments
Although RPG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P 500 Pure Growth ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:10 PM ET):
| Invesco S&P 500 Pure Growth ETF (RPG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 35.12 |
35.15 |
35.13 |
-1.56 |
156K |
- |
2.0B |
RPG Dividend-Like Income Using Covered Calls
With RPG at 35.13, 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% |
1.05 |
0.3 |
| 5% |
1.76 |
0.5 |
| 10% |
3.51 |
1.0 |
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 RPG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
35.00 |
1.40 |
26 |
4.8 |
0.00 (0.0%) |
| Oct 17 |
35.00 |
2.55 |
180 |
1.3 |
0.00 (0.0%) |
| 5% Yield On RPG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
35.00 |
1.40 |
26 |
4.8 |
0.00 (0.0%) |
| Oct 17 |
35.00 |
2.55 |
180 |
1.3 |
0.00 (0.0%) |
| 10% Yield On RPG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
35.00 |
1.40 |
26 |
4.8 |
0.00 (0.0%) |
| Oct 17 |
35.00 |
2.55 |
180 |
1.3 |
0.00 (0.0%) |
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