SPLV Dividend Type Payments

Invesco S&P 500 Low Volatility ETF dividend

Although SPLV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P 500 Low Volatility ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Invesco S&P 500 Low Volatility ETF (SPLV)
Bid Ask Last Change Volume P/E Market Cap
71.40 75.12 72.92 +0.41 3.6M - 11B

SPLV Dividend-Like Income Using Covered Calls

With SPLV at 72.92, 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% 2.19 0.6
5% 3.65 1.0
10% 7.29 2.0

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 SPLV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 75.00 1.55 136 1.1 0.00 (0.0%)
Dec 19 75.00 2.30 227 1.0 0.00 (0.0%)
5% Yield On SPLV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 75.00 1.55 136 1.1 0.00 (0.0%)

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