KOMP Dividend Type Payments
Although KOMP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Kensho New Economies Composite ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 3:45 PM ET):
SPDR S&P Kensho New Economies Composite ETF (KOMP) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
46.03 |
46.05 |
46.04 |
+0.38 |
91K |
- |
0.0B |
KOMP Dividend-Like Income Using Covered Calls
With KOMP at 46.04, 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% |
1.38 |
0.4 |
5% |
2.30 |
0.6 |
10% |
4.60 |
1.3 |
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 KOMP Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
47.00 |
1.75 |
197 |
0.9 |
0.95 (2.1%) |
May 17 |
46.00 |
0.50 |
15 |
3.0 |
0.00 (0.0%) |
5% Yield On KOMP Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
47.00 |
1.75 |
197 |
0.9 |
0.95 (2.1%) |
May 17 |
46.00 |
0.50 |
15 |
3.0 |
0.00 (0.0%) |
10% Yield On KOMP Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
46.00 |
0.50 |
15 |
3.0 |
0.00 (0.0%) |
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