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 Fri 4:16 PM ET):
| Invesco Building & Construction ETF (PKB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 73.92 |
76.88 |
75.40 |
+0.02 |
5K |
- |
0.8B |
PKB Dividend-Like Income Using Covered Calls
With PKB at 75.40, 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% |
2.26 |
0.6 |
| 5% |
3.77 |
1.0 |
| 10% |
7.54 |
2.1 |
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 |
| Sep 19 |
77.00 |
3.70 |
134 |
2.8 |
0.12 (0.2%) |
| Dec 19 |
77.00 |
5.30 |
225 |
2.4 |
0.12 (0.2%) |
| 5% Yield On PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
77.00 |
3.70 |
134 |
2.8 |
0.12 (0.2%) |
| Dec 19 |
77.00 |
5.30 |
225 |
2.4 |
0.12 (0.2%) |
| 10% Yield On PKB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
77.00 |
3.70 |
134 |
2.8 |
0.12 (0.2%) |
| Dec 19 |
77.00 |
5.30 |
225 |
2.4 |
0.12 (0.2%) |
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