XSLV Dividend Type Payments
Although XSLV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P SmallCap 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 Fri 4:16 PM ET):
| Invesco S&P SmallCap Low Volatility ETF (XSLV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 47.85 | 50.42 | 49.46 | -0.17 | 9K | - | 1.1B |
XSLV Dividend-Like Income Using Covered Calls
With XSLV at 49.46, 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% | 1.48 | 0.4 |
| 5% | 2.47 | 0.7 |
| 10% | 4.95 | 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 XSLV Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 20 | 51.00 | 1.05 | 218 | 0.5 | 0.58 (1.2%) | |
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| Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | SAVA dividend | |
| 2. | SPY dividend | 7. | XLF dividend | 2. | RKLB dividend | |
| 3. | EEM dividend | 8. | KWEB dividend | 3. | LUNR dividend | |
| 4. | FXI dividend | 9. | TLT dividend | 4. | NMRA dividend | |
| 5. | IWM dividend | 10. | KRE dividend | 5. | CRVS dividend | |
Want more examples? XSD Dividend | XSMO Dividend
