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 |
| 46.30 | 46.63 | 46.30 | -0.05 | 30K | - | 1.6B |
QQQE Dividend-Like Income Using Covered Calls
With QQQE at 46.30, 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% | 1.39 | 0.4 |
| 5% | 2.32 | 0.6 |
| 10% | 4.63 | 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 | |
| Mar 15 | 47.00 | 0.95 | 211 | 0.5 | 0.37 (0.8%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Sep 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | EEM dividend | 6. | GE dividend | 1. | COTY dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | LB dividend | |
| 3. | SPX dividend | 8. | FB dividend | 3. | AKRX dividend | |
| 4. | QQQ dividend | 9. | IWM dividend | 4. | UVXY dividend | |
| 5. | XLF dividend | 10. | GDX dividend | 5. | GPS dividend | |
Want more examples? QQQC Dividend | QRTEA Dividend
