SPMO Dividend Type Payments
Although SPMO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P 500 Momentum ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Invesco S&P 500 Momentum ETF (SPMO) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 88.25 |
89.44 |
88.26 |
0.00 |
528K |
- |
0.0B |
SPMO Dividend-Like Income Using Covered Calls
With SPMO at 88.26, 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% |
2.65 |
0.7 |
| 5% |
4.41 |
1.2 |
| 10% |
8.83 |
2.4 |
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 SPMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
89.00 |
2.15 |
30 |
5.7 |
0.00 (0.0%) |
| Oct 17 |
100.00 |
1.45 |
184 |
0.8 |
10.56 (12.0%) |
| 5% Yield On SPMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
89.00 |
2.15 |
30 |
5.7 |
0.00 (0.0%) |
| Oct 17 |
89.00 |
4.80 |
184 |
2.4 |
0.00 (0.0%) |
| 10% Yield On SPMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
89.00 |
2.15 |
30 |
5.7 |
0.00 (0.0%) |
| Oct 17 |
90.00 |
4.60 |
184 |
2.5 |
0.56 (0.6%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
