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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Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | FXI dividend | 6. | IWM dividend | 1. | PRMW dividend | |
2. | NVDA dividend | 7. | EEM dividend | 2. | GRPN dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | HNST dividend | |
4. | SLV dividend | 9. | EWZ dividend | 4. | AAP dividend | |
5. | TSLA dividend | 10. | SMCI dividend | 5. | LUNR dividend |
Want more examples? PBD Dividend | PBF Dividend