SDY Dividend Type Payments
Although SDY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on 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 Tue 4:16 PM ET):
SPDR S&P Dividend ETF (SDY) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
98.24 | 99.99 | 98.86 | +0.36 | 703K | - | 0.0B |
SDY Dividend-Like Income Using Covered Calls
With SDY at 98.86, 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% | 2.97 | 0.8 |
5% | 4.94 | 1.4 |
10% | 9.89 | 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 SDY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Mar 15 | 100.00 | 0.25 | 25 | 1.0 | 0.01 (0.0%) | |
Apr 18 | 100.00 | 0.95 | 59 | 1.6 | 0.01 (0.0%) |
5% Yield On SDY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 18 | 100.00 | 0.95 | 59 | 1.6 | 0.01 (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. | ROKU dividend | |
2. | EEM dividend | 7. | GE dividend | 2. | IQ dividend | |
3. | SPY dividend | 8. | BAC dividend | 3. | BHC dividend | |
4. | QQQ dividend | 9. | XOP dividend | 4. | DBX dividend | |
5. | FXI dividend | 10. | GLD dividend | 5. | VIPS dividend |
Want more examples? SDT Dividend | SDYL Dividend