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 Weighted Index Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
114.63 | 119.55 | 116.70 | -1.17 | 72K | - | 2.0B |
QQEW Dividend-Like Income Using Covered Calls
With QQEW at 116.70, 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% | 3.50 | 1.0 |
5% | 5.84 | 1.6 |
10% | 11.67 | 3.2 |
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 | |
May 17 | 119.00 | 0.85 | 31 | 1.0 | 0.00 (0.0%) | |
Oct 18 | 119.00 | 2.45 | 185 | 1.0 | 0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | SPY dividend | 6. | TLT dividend | 1. | INFY dividend | |
2. | IWM dividend | 7. | FXI dividend | 2. | DJT dividend | |
3. | QQQ dividend | 8. | AAPL dividend | 3. | CVNA dividend | |
4. | TSLA dividend | 9. | HYG dividend | 4. | FSLY dividend | |
5. | SLV dividend | 10. | NVDA dividend | 5. | EYPT dividend |
Want more examples? QPX Dividend | QQH Dividend