XRLV Dividend Type Payments
Although XRLV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco S&P 500 ex-Rate Sensitive 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 Tue 11:50 AM ET):
| Invesco S&P 500 ex-Rate Sensitive Low Volatility ETF (XRLV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 54.21 | 54.30 | 54.64 | +0.03 | 1K | - | 0.2B |
XRLV Dividend-Like Income Using Covered Calls
With XRLV at 54.64, 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% | 1.64 | 0.4 |
| 5% | 2.73 | 0.7 |
| 10% | 5.46 | 1.5 |
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:
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | RZLT dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | SOC dividend | |
| 3. | QQQ dividend | 8. | TLT dividend | 3. | AI dividend | |
| 4. | IWM dividend | 9. | SLV dividend | 4. | IMNM dividend | |
| 5. | IBIT dividend | 10. | FXI dividend | 5. | PATH dividend | |
Want more examples? XRAY Dividend | XRT Dividend
