SOXX Dividend Type Payments

Although SOXX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares PHLX SOX Semiconductor Sector Index Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

iShares PHLX SOX Semiconductor Sector Index Fund (SOXX)
Bid Ask Last Change Volume P/E Market Cap
183.46 183.78 183.53 -1.37 380K - 1.2B

SOXX Dividend-Like Income Using Covered Calls

With SOXX at 183.53, 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% 5.51 1.5
5% 9.18 2.5
10% 18.35 5.0

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 SOXX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 190.00 1.25 23 5.4 6.22 (3.4%)
Apr 18 196.00 1.40 57 2.5 12.22 (6.7%)
5% Yield On SOXX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 190.00 1.25 23 5.4 6.22 (3.4%)
Apr 18 195.00 1.60 57 2.8 11.22 (6.1%)
10% Yield On SOXX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 190.00 1.25 23 5.4 6.22 (3.4%)
Apr 18 190.00 3.10 57 5.4 6.22 (3.4%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.Z dividend
2.EEM dividend 7.GE dividend   2.FSLR dividend
3.SPY dividend 8.LLY dividend   3.ROKU dividend
4.QQQ dividend 9.BAC dividend   4.IQ dividend
5.FXI dividend 10.GLD dividend   5.DBX dividend

Want more examples? SOXS Dividend | SOYB Dividend