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 Tue 4:16 PM ET):

SPDR S&P CAPITAL MARKETS ETF (KCE)
Bid Ask Last Change Volume P/E Market Cap
52.88 54.79 53.82 +0.61 27K - 1.4B

KCE Dividend-Like Income Using Covered Calls

With KCE at 53.82, here's a table showing how big the annual "dividend" (ie. 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% 1.61 0.4
5% 2.69 0.7
10% 5.38 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:

3% Yield On KCE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 56.00 0.20 32 0.6 1.21 (2.2%)
Dec 21 57.00 0.35 67 0.5 2.21 (4.1%)
5% Yield On KCE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 55.00 0.35 32 1.1 0.21 (0.4%)
Dec 21 56.00 0.60 67 0.9 1.21 (2.2%)

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Want more examples? KCAP Dividend | KCNY Dividend