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 12:20 PM ET):
| Invesco Building & Construction ETF (PKB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 83.00 |
83.08 |
83.11 |
+1.37 |
24K |
- |
0.8B |
PKB Dividend-Like Income Using Covered Calls
With PKB at 83.11, 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% |
2.49 |
0.7 |
| 5% |
4.16 |
1.1 |
| 10% |
8.31 |
2.3 |
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 PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 15 |
83.00 |
0.15 |
10 |
0.7 |
0.00 (0.0%) |
| Dec 20 |
83.00 |
1.65 |
45 |
3.5 |
0.00 (0.0%) |
| 5% Yield On PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
83.00 |
1.65 |
45 |
3.5 |
0.00 (0.0%) |
| Jun 20 |
83.00 |
5.40 |
227 |
2.3 |
0.00 (0.0%) |
| 10% Yield On PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
83.00 |
1.65 |
45 |
3.5 |
0.00 (0.0%) |
| Jun 20 |
83.00 |
5.40 |
227 |
2.3 |
0.00 (0.0%) |
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