KCE Dividend Type Payments

Although KCE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Capital Markets 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):

SPDR S&P Capital Markets ETF (KCE)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
133.24	137.44	134.81	-2.92	24K	-	0.2B

KCE Dividend-Like Income Using Covered Calls

With KCE at 134.81, 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%	4.04	1.1
5%	6.74	1.8
10%	13.48	3.7

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 KCE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	137.00	3.50	99	3.1	0.00 (0.0%)
Dec 19	140.00	4.50	190	2.4	2.56 (1.9%)

5% Yield On KCE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	137.00	3.50	99	3.1	0.00 (0.0%)
Dec 19	140.00	4.50	190	2.4	2.56 (1.9%)

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Want more examples? KC Dividend | KDP Dividend