SPHD Dividend Type Payments
Although SPHD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P 500 High Dividend Low Volatility ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:40 PM ET):
| Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 46.00 |
46.01 |
46.00 |
-0.98 |
355K |
- |
3.6B |
SPHD Dividend-Like Income Using Covered Calls
With SPHD at 46.00, 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% |
1.38 |
0.4 |
| 5% |
2.30 |
0.6 |
| 10% |
4.60 |
1.3 |
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 SPHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
46.00 |
1.00 |
26 |
3.8 |
0.00 (0.0%) |
| Sep 19 |
46.00 |
2.10 |
152 |
1.4 |
0.00 (0.0%) |
| 5% Yield On SPHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
46.00 |
1.00 |
26 |
3.8 |
0.00 (0.0%) |
| Sep 19 |
46.00 |
2.10 |
152 |
1.4 |
0.00 (0.0%) |
| 10% Yield On SPHD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
46.00 |
1.00 |
26 |
3.8 |
0.00 (0.0%) |
| Sep 19 |
46.00 |
2.10 |
152 |
1.4 |
0.00 (0.0%) |
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