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 Weighted Index Shares 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 Weighted Index Shares (QQQE) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
96.47 | 100.28 | 98.47 | -0.49 | 62K | - | 0.5B |
QQQE Dividend-Like Income Using Covered Calls
With QQQE at 98.47, 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% | 2.95 | 0.8 |
5% | 4.92 | 1.3 |
10% | 9.85 | 2.7 |
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 | |
Sep 19 | 100.00 | 1.55 | 71 | 1.8 | 0.00 (0.0%) | |
Dec 19 | 100.00 | 3.60 | 162 | 2.0 | 0.00 (0.0%) |
5% Yield On QQQE Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Sep 19 | 100.00 | 1.55 | 71 | 1.8 | 0.00 (0.0%) | |
Dec 19 | 100.00 | 3.60 | 162 | 2.0 | 0.00 (0.0%) |
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Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | GLD dividend | 1. | NFE dividend | |
2. | SLV dividend | 7. | AAPL dividend | 2. | APPS dividend | |
3. | SPY dividend | 8. | IBIT dividend | 3. | BRSL dividend | |
4. | TSLA dividend | 9. | TLT dividend | 4. | METC dividend | |
5. | IWM dividend | 10. | QQQ dividend | 5. | PROK dividend |
Want more examples? QQQ Dividend | QQQJ Dividend