XSMO Dividend Type Payments

Although XSMO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P SmallCap 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 SmallCap Momentum ETF (XSMO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
70.00	70.95	70.30	-0.40	860K	-	0.1B

XSMO Dividend-Like Income Using Covered Calls

With XSMO at 70.30, 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%	2.11	0.6
5%	3.52	1.0
10%	7.03	1.9

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 XSMO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	71.00	1.20	64	1.9	0.05 (0.1%)
Apr 17	71.00	1.00	154	0.6	0.05 (0.1%)

5% Yield On XSMO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	71.00	1.20	64	1.9	0.05 (0.1%)

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Want more examples? XSLV Dividend | XSOE Dividend