QABA Dividend Type Payments
Although QABA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust NASDAQ ABA Community Bank Index Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:20 AM ET):
| First Trust NASDAQ ABA Community Bank Index Fund (QABA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 54.60 | 54.74 | 54.44 | +0.15 | 0K | - | 0.1B |
QABA Dividend-Like Income Using Covered Calls
With QABA at 54.44, 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% | 1.63 | 0.4 |
| 5% | 2.72 | 0.7 |
| 10% | 5.44 | 1.5 |
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 QABA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 55.00 | 0.40 | 59 | 0.7 | 0.26 (0.5%) | |
| Jan 16 | 55.00 | 0.70 | 87 | 0.8 | 0.26 (0.5%) | |
| 5% Yield On QABA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 55.00 | 0.70 | 87 | 0.8 | 0.26 (0.5%) | |
| Apr 17 | 55.00 | 1.60 | 178 | 0.9 | 0.26 (0.5%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | INBX dividend | |
| 2. | KVUE dividend | 7. | HYG dividend | 2. | CIFR dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | SNDK dividend | |
| 4. | SLV dividend | 9. | QQQ dividend | 4. | RXRX dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | UPST dividend | |
Want more examples? PZZA Dividend | QAI Dividend
