PAVE Dividend Type Payments
Although PAVE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X U.S. Infrastructure Development ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Global X U.S. Infrastructure Development ETF (PAVE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 45.89 |
46.64 |
46.16 |
-0.12 |
1.3M |
- |
4.3B |
PAVE Dividend-Like Income Using Covered Calls
With PAVE at 46.16, 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% |
1.38 |
0.4 |
| 5% |
2.31 |
0.6 |
| 10% |
4.62 |
1.3 |
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 PAVE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
47.00 |
0.15 |
4 |
3.8 |
0.36 (0.8%) |
| Mar 20 |
47.00 |
1.70 |
123 |
1.4 |
0.36 (0.8%) |
| 5% Yield On PAVE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
47.00 |
0.15 |
4 |
3.8 |
0.36 (0.8%) |
| Mar 20 |
47.00 |
1.70 |
123 |
1.4 |
0.36 (0.8%) |
| 10% Yield On PAVE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
47.00 |
0.15 |
4 |
3.8 |
0.36 (0.8%) |
| Mar 20 |
47.00 |
1.70 |
123 |
1.4 |
0.36 (0.8%) |
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