QQQE Dividend Type Payments

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

Direxion NASDAQ-100 Equal WTD (QQQE)
Bid Ask Last Change Volume P/E Market Cap
43.00 47.10 47.10 +0.32 17K - 0.0B

QQQE Dividend-Like Income Using Covered Calls

With QQQE at 47.10, 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% 1.41 0.4
5% 2.36 0.6
10% 4.71 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 QQQE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 47.00 0.75 127 0.5 0.00 (0.0%)
Sep 20 47.00 1.20 218 0.5 0.00 (0.0%)

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Want more examples? QQQC Dividend | QRTEA Dividend