XMMO Dividend Type Payments

Although XMMO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P MidCap Momentum ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Invesco S&P MidCap Momentum ETF (XMMO)
Bid Ask Last Change Volume P/E Market Cap
102.00 107.73 103.22 -6.96 644K - 0.2B

XMMO Dividend-Like Income Using Covered Calls

With XMMO at 103.22, 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% 3.10 0.8
5% 5.16 1.4
10% 10.32 2.8

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 XMMO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 119.00 1.55 169 0.9 11.27 (10.9%)
Jun 20 114.00 1.55 78 2.0 6.27 (6.1%)
5% Yield On XMMO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 114.00 1.55 78 2.0 6.27 (6.1%)

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Want more examples? XMLV Dividend | XMVM Dividend