RPV Dividend Type Payments
Although RPV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P 500 Pure Value ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Invesco S&P 500 Pure Value ETF (RPV) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 83.78 |
86.29 |
84.64 |
-1.49 |
114K |
- |
0.2B |
RPV Dividend-Like Income Using Covered Calls
With RPV at 84.64, 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% |
2.54 |
0.7 |
| 5% |
4.23 |
1.2 |
| 10% |
8.46 |
2.3 |
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 RPV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
86.00 |
0.65 |
26 |
1.4 |
0.00 (0.0%) |
| Sep 19 |
86.00 |
2.50 |
152 |
1.5 |
0.00 (0.0%) |
| 5% Yield On RPV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
86.00 |
0.65 |
26 |
1.4 |
0.00 (0.0%) |
| Sep 19 |
86.00 |
2.50 |
152 |
1.5 |
0.00 (0.0%) |
| 10% Yield On RPV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
86.00 |
1.75 |
61 |
2.4 |
0.00 (0.0%) |
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