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