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 Fri 11:30 AM ET):
| Invesco S&P Midcap 400 Pure Value ETF (RFV) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 132.43 |
132.68 |
132.53 |
-0.93 |
1K |
- |
0.2B |
RFV Dividend-Like Income Using Covered Calls
With RFV at 132.53, 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% |
3.98 |
1.1 |
| 5% |
6.63 |
1.8 |
| 10% |
13.25 |
3.6 |
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 RFV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
133.00 |
1.40 |
36 |
3.9 |
0.32 (0.2%) |
| Mar 20 |
133.00 |
3.90 |
99 |
3.9 |
0.32 (0.2%) |
| 5% Yield On RFV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
133.00 |
1.40 |
36 |
3.9 |
0.32 (0.2%) |
| Mar 20 |
133.00 |
3.90 |
99 |
3.9 |
0.32 (0.2%) |
| 10% Yield On RFV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
133.00 |
1.40 |
36 |
3.9 |
0.32 (0.2%) |
| Mar 20 |
133.00 |
3.90 |
99 |
3.9 |
0.32 (0.2%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
