KBWP Dividend Type Payments

Invesco KBW Property & Casualty Insurance ETF dividend

Although KBWP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco KBW Property & Casualty Insurance ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:35 AM ET):

Invesco KBW Property & Casualty Insurance ETF (KBWP)
Bid Ask Last Change Volume P/E Market Cap
121.09 121.43 121.16 -0.38 1K - 0.2B

KBWP Dividend-Like Income Using Covered Calls

With KBWP at 121.16, 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% 3.63 1.0
5% 6.06 1.7
10% 12.12 3.3

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 KBWP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 121.00 4.00 148 2.4 0.00 (0.0%)
Jul 18 121.00 1.60 57 2.1 0.00 (0.0%)
5% Yield On KBWP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 121.00 4.00 148 2.4 0.00 (0.0%)
Jul 18 121.00 1.60 57 2.1 0.00 (0.0%)

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