SIL Dividend Type Payments

Global X Silver Miners ETF dividend

Although SIL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X Silver Miners 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):

Global X Silver Miners ETF (SIL)
Bid Ask Last Change Volume P/E Market Cap
41.22 42.60 42.57 +1.88 1.3M - 1.4B

SIL Dividend-Like Income Using Covered Calls

With SIL at 42.57, 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% 1.28 0.3
5% 2.13 0.6
10% 4.26 1.2

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 SIL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 43.00 0.65 8 8.1 0.40 (0.9%)
Oct 17 43.00 4.20 162 2.6 0.40 (0.9%)
5% Yield On SIL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 43.00 0.65 8 8.1 0.40 (0.9%)
Oct 17 43.00 4.20 162 2.6 0.40 (0.9%)
10% Yield On SIL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 43.00 0.65 8 8.1 0.40 (0.9%)
Oct 17 43.00 4.20 162 2.6 0.40 (0.9%)

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Want more examples? SIJ Dividend | SILJ Dividend