XMHQ Dividend Type Payments
Although XMHQ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P MidCap Quality ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Invesco S&P MidCap Quality ETF (XMHQ) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 93.86 |
100.00 |
98.33 |
-0.15 |
147K |
- |
0.1B |
XMHQ Dividend-Like Income Using Covered Calls
With XMHQ at 98.33, 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% |
2.95 |
0.8 |
| 5% |
4.92 |
1.3 |
| 10% |
9.83 |
2.7 |
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 XMHQ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 18 |
100.00 |
0.95 |
43 |
2.2 |
0.00 (0.0%) |
| Sep 19 |
100.00 |
3.20 |
106 |
3.0 |
0.00 (0.0%) |
| 5% Yield On XMHQ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 18 |
100.00 |
0.95 |
43 |
2.2 |
0.00 (0.0%) |
| Sep 19 |
100.00 |
3.20 |
106 |
3.0 |
0.00 (0.0%) |
| 10% Yield On XMHQ Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
100.00 |
3.20 |
106 |
3.0 |
0.00 (0.0%) |
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