CSD Dividend Type Payments
Although CSD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P Spin-Off 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 Spin-Off ETF (CSD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 64.80 | 72.63 | 68.46 | +0.43 | 2K | - | 0.8B |
CSD Dividend-Like Income Using Covered Calls
With CSD at 68.46, 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% | 2.05 | 0.6 |
| 5% | 3.42 | 0.9 |
| 10% | 6.85 | 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 CSD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 76.00 | 1.50 | 184 | 0.8 | 3.37 (4.9%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | STLA dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | UPST dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | NBIS dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | HOOD dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | RIOT dividend | |
Want more examples? CSCO Dividend | CSGP Dividend
