PKB Dividend Type Payments
Although PKB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco Building & Construction ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:05 AM ET):
| Invesco Building & Construction ETF (PKB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 95.66 |
96.10 |
95.52 |
+0.64 |
3K |
- |
1.0B |
PKB Dividend-Like Income Using Covered Calls
With PKB at 95.52, 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% |
2.87 |
0.8 |
| 5% |
4.78 |
1.3 |
| 10% |
9.55 |
2.6 |
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 PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
100.00 |
0.50 |
45 |
1.1 |
3.90 (4.1%) |
| Nov 21 |
96.00 |
0.80 |
17 |
4.1 |
0.00 (0.0%) |
| 5% Yield On PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
96.00 |
2.30 |
45 |
4.9 |
0.00 (0.0%) |
| Nov 21 |
96.00 |
0.80 |
17 |
4.1 |
0.00 (0.0%) |
| 10% Yield On PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
96.00 |
2.30 |
45 |
4.9 |
0.00 (0.0%) |
| Nov 21 |
96.00 |
0.80 |
17 |
4.1 |
0.00 (0.0%) |
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