KRE Dividend Type Payments
Although KRE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Regional Banking ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 3:15 PM ET):
| SPDR S&P Regional Banking ETF (KRE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 61.71 |
61.72 |
61.72 |
+0.13 |
5.9M |
- |
3.8B |
KRE Dividend-Like Income Using Covered Calls
With KRE at 61.72, 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% |
1.85 |
0.5 |
| 5% |
3.09 |
0.8 |
| 10% |
6.17 |
1.7 |
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 KRE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 5 |
61.50 |
1.47 |
19 |
6.6 |
0.00 (0.0%) |
| Sep 12 |
61.50 |
1.77 |
26 |
6.0 |
0.00 (0.0%) |
| 5% Yield On KRE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 5 |
61.50 |
1.47 |
19 |
6.6 |
0.00 (0.0%) |
| Sep 12 |
61.50 |
1.77 |
26 |
6.0 |
0.00 (0.0%) |
| 10% Yield On KRE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 5 |
61.50 |
1.47 |
19 |
6.6 |
0.00 (0.0%) |
| Sep 12 |
61.50 |
1.77 |
26 |
6.0 |
0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
