PBE Dividend Type Payments

Although PBE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco Biotechnology & Genome ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:20 PM ET):

Invesco Biotechnology & Genome ETF (PBE)
Bid Ask Last Change Volume P/E Market Cap
71.40 71.54 71.50 -0.74 1K - 0.4B

PBE Dividend-Like Income Using Covered Calls

With PBE at 71.50, 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% 2.15 0.6
5% 3.58 1.0
10% 7.15 2.0

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 PBE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 72.00 0.50 39 1.3 0.46 (0.6%)
Jun 20 72.00 3.60 221 1.6 0.46 (0.6%)
5% Yield On PBE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 72.00 0.50 39 1.3 0.46 (0.6%)
Jun 20 72.00 3.60 221 1.6 0.46 (0.6%)

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Want more examples? PBD Dividend | PBF Dividend