XMMO Dividend Type Payments
Although XMMO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P MidCap Momentum 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 Momentum ETF (XMMO) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 120.98 |
121.13 |
120.98 |
-4.53 |
567K |
- |
0.3B |
XMMO Dividend-Like Income Using Covered Calls
With XMMO at 120.98, 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% |
3.63 |
1.0 |
| 5% |
6.05 |
1.7 |
| 10% |
12.10 |
3.3 |
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 XMMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
121.00 |
2.60 |
56 |
4.4 |
0.00 (0.0%) |
| Sep 19 |
121.00 |
6.30 |
211 |
2.9 |
0.00 (0.0%) |
| 5% Yield On XMMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
121.00 |
2.60 |
56 |
4.4 |
0.00 (0.0%) |
| Sep 19 |
121.00 |
6.30 |
211 |
2.9 |
0.00 (0.0%) |
| 10% Yield On XMMO Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
121.00 |
2.60 |
56 |
4.4 |
0.00 (0.0%) |
| Jun 20 |
121.00 |
4.30 |
120 |
3.5 |
0.00 (0.0%) |
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