XLG Dividend Type Payments

Invesco S&P 500 Top 50 ETF dividend

Although XLG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P 500 Top 50 ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:05 PM ET):

Invesco S&P 500 Top 50 ETF (XLG)
Bid Ask Last Change Volume P/E Market Cap
59.41 59.42 59.42 +0.41 1.9M - 2.5B

XLG Dividend-Like Income Using Covered Calls

With XLG at 59.42, 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% 1.78 0.5
5% 2.97 0.8
10% 5.94 1.6

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 XLG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 60.00 1.70 137 1.2 0.58 (1.0%)
Sep 18 60.00 2.05 229 0.9 0.58 (1.0%)
5% Yield On XLG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 60.00 1.70 137 1.2 0.58 (1.0%)
Sep 18 60.00 2.05 229 0.9 0.58 (1.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Feb 20 Expiration     Top 5 High Yield
1.SLV dividend 6.QQQ dividend   1.LITE dividend
2.NVDA dividend 7.EWZ dividend   2.RBLX dividend
3.KWEB dividend 8.SPY dividend   3.BE dividend
4.GLD dividend 9.INTC dividend   4.USAR dividend
5.IBIT dividend 10.CORZ dividend   5.LUNR dividend

Want more examples? XLF Dividend | XLI Dividend