SPHB Dividend Type Payments

Invesco S&P 500 High Beta ETF dividend

Although SPHB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P 500 High Beta ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:10 PM ET):

Invesco S&P 500 High Beta ETF (SPHB)
Bid Ask Last Change Volume P/E Market Cap
89.58 89.60 89.55 +0.55 164K - 0.3B

SPHB Dividend-Like Income Using Covered Calls

With SPHB at 89.55, 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% 2.69 0.7
5% 4.48 1.2
10% 8.96 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 SPHB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 91.00 1.30 32 4.1 1.40 (1.6%)
Jan 17 90.00 0.65 60 1.1 0.40 (0.4%)
5% Yield On SPHB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 91.00 1.30 32 4.1 1.40 (1.6%)
Jun 20 90.00 5.00 214 2.3 0.40 (0.4%)
10% Yield On SPHB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 91.00 1.30 32 4.1 1.40 (1.6%)

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Want more examples? SPH Dividend | SPHD Dividend