XLG Dividend Type Payments

Invesco S&P 500 Top 50 ETF dividend

Although XLG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P 500 Top 50 ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:55 PM ET):

Invesco S&P 500 Top 50 ETF (XLG)
Bid Ask Last Change Volume P/E Market Cap
50.83 50.84 50.84 +0.54 1.6M - 2.1B

XLG Dividend-Like Income Using Covered Calls

With XLG at 50.84, 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% 1.53 0.4
5% 2.54 0.7
10% 5.08 1.4

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 XLG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 51.00 2.40 228 1.1 0.16 (0.3%)
Jun 20 51.00 1.00 137 0.7 0.16 (0.3%)
5% Yield On XLG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 51.00 2.40 228 1.1 0.16 (0.3%)
Jun 20 51.00 1.00 137 0.7 0.16 (0.3%)
10% Yield On XLG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 21 51.00 0.50 18 2.8 0.16 (0.3%)
Mar 21 51.00 0.65 46 1.4 0.16 (0.3%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Feb 21 Expiration     Top 5 High Yield
1.NVDA dividend 6.FXI dividend   1.LUMN dividend
2.TLT dividend 7.SLV dividend   2.AFRM dividend
3.SPY dividend 8.QQQ dividend   3.SYM dividend
4.IWM dividend 9.KWEB dividend   4.BILL dividend
5.TSLA dividend 10.GLD dividend   5.ENPH dividend

Want more examples? XLF Dividend | XLI Dividend