SDY Dividend Type Payments

Although SDY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on State Street SPDR S&P Dividend ETF 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):

State Street SPDR S&P Dividend ETF (SDY)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
138.84	141.37	140.33	-0.69	261K	-	24B

SDY Dividend-Like Income Using Covered Calls

With SDY at 140.33, 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%	4.21	1.2
5%	7.02	1.9
10%	14.03	3.8

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 SDY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	141.00	3.20	120	2.4	0.00 (0.0%)
Jul 17	141.00	4.30	211	1.9	0.00 (0.0%)

5% Yield On SDY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Apr 17	141.00	3.20	120	2.4	0.00 (0.0%)
Feb 20	141.00	2.00	64	2.5	0.00 (0.0%)

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Want more examples? SDS Dividend | SE Dividend