PBJ Dividend Type Payments
Although PBJ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco Food & Beverage ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 3:35 PM ET):
| Invesco Food & Beverage ETF (PBJ) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 48.24 | 48.27 | 48.25 | +0.35 | 5K | - | 0.2B |
PBJ Dividend-Like Income Using Covered Calls
With PBJ at 48.25, 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% | 1.45 | 0.4 |
| 5% | 2.41 | 0.7 |
| 10% | 4.83 | 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 PBJ Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 20 | 49.00 | 1.20 | 225 | 0.5 | 0.73 (1.5%) | |
| Mar 21 | 49.00 | 0.55 | 134 | 0.4 | 0.73 (1.5%) | |
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | EEM dividend | 1. | GRPN dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | ZI dividend | |
| 3. | SLV dividend | 8. | TSLA dividend | 3. | APLT dividend | |
| 4. | SPY dividend | 9. | XLF dividend | 4. | NBIS dividend | |
| 5. | IWM dividend | 10. | EWZ dividend | 5. | LUNR dividend | |
Want more examples? PBI Dividend | PBPB Dividend
