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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| Top 10 Open Interest For Mar 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPX dividend | 6. | EWZ dividend | 1. | ICPT dividend | |
| 2. | EEM dividend | 7. | GE dividend | 2. | ROKU dividend | |
| 3. | SPY dividend | 8. | XOP dividend | 3. | KPTI dividend | |
| 4. | FXI dividend | 9. | BAC dividend | 4. | BHC dividend | |
| 5. | QQQ dividend | 10. | JD dividend | 5. | VKTX dividend | |
Want more examples? QQQC Dividend | QRTEA Dividend
