SOXX Dividend Type Payments

Although SOXX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares PHLX SEMICONDUCTOR ETF 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 SEMICONDUCTOR ETF (SOXX)
Bid Ask Last Change Volume P/E Market Cap
180.49 180.65 181.07 -0.23 428K - 15B

SOXX Dividend-Like Income Using Covered Calls

With SOXX at 181.07, 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% 5.43 1.5
5% 9.05 2.5
10% 18.11 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
Sep 21 192.00 0.85 37 2.3 11.35 (6.3%)
Oct 19 195.00 1.30 65 2.0 14.35 (7.9%)
5% Yield On SOXX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 190.00 1.20 37 3.2 9.35 (5.2%)
Oct 19 192.00 1.90 65 2.9 11.35 (6.3%)
10% Yield On SOXX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 187.00 2.10 37 5.7 6.35 (3.5%)
Oct 19 186.00 3.90 65 6.0 5.35 (3.0%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.AMAT dividend
2.SPY dividend 7.GLD dividend   2.NVDA dividend
3.SPX dividend 8.IWM dividend   3.UVXY dividend
4.QQQ dividend 9.FB dividend   4.DE dividend
5.XLF dividend 10.GDX dividend   5.AKRX dividend

Want more examples? SOXS Dividend | SOYB Dividend