QQEW Dividend Type Payments

Although QQEW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on FIRST TRUST NASDAQ-100 EQUAL W to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

FIRST TRUST NASDAQ-100 EQUAL W (QQEW)
Bid Ask Last Change Volume P/E Market Cap
58.82 60.30 59.10 +0.96 21K - 5.5B

QQEW Dividend-Like Income Using Covered Calls

With QQEW at 59.10, 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% 1.77 0.5
5% 2.96 0.8
10% 5.91 1.6

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 QQEW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 60.00 0.65 65 0.5 0.00 (0.0%)

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