RFV Dividend Type Payments
Although RFV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P Midcap 400 Pure Value ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:30 PM ET):
| Invesco S&P Midcap 400 Pure Value ETF (RFV) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 124.44 |
124.68 |
123.53 |
+1.37 |
3K |
- |
0.1B |
RFV Dividend-Like Income Using Covered Calls
With RFV at 123.53, 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% |
3.71 |
1.0 |
| 5% |
6.18 |
1.7 |
| 10% |
12.35 |
3.4 |
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 RFV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
125.00 |
2.90 |
68 |
4.3 |
0.32 (0.3%) |
| Nov 21 |
125.00 |
1.75 |
40 |
4.4 |
0.32 (0.3%) |
| 5% Yield On RFV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
125.00 |
2.90 |
68 |
4.3 |
0.32 (0.3%) |
| Nov 21 |
125.00 |
1.75 |
40 |
4.4 |
0.32 (0.3%) |
| 10% Yield On RFV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
125.00 |
2.90 |
68 |
4.3 |
0.32 (0.3%) |
| Nov 21 |
125.00 |
1.75 |
40 |
4.4 |
0.32 (0.3%) |
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