SPLG Dividend Type Payments
Although SPLG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Portfolio S&P 500 ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:05 PM ET):
| SPDR Portfolio S&P 500 ETF (SPLG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 64.72 |
64.73 |
64.72 |
-0.45 |
5.3M |
- |
0.1B |
SPLG Dividend-Like Income Using Covered Calls
With SPLG at 64.72, 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% |
1.94 |
0.5 |
| 5% |
3.24 |
0.9 |
| 10% |
6.47 |
1.8 |
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 SPLG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
65.00 |
1.10 |
17 |
6.5 |
0.27 (0.4%) |
| Sep 19 |
65.00 |
3.70 |
143 |
2.6 |
0.27 (0.4%) |
| 5% Yield On SPLG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
65.00 |
1.10 |
17 |
6.5 |
0.27 (0.4%) |
| Sep 19 |
65.00 |
3.70 |
143 |
2.6 |
0.27 (0.4%) |
| 10% Yield On SPLG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
65.00 |
1.10 |
17 |
6.5 |
0.27 (0.4%) |
| Sep 19 |
65.00 |
3.70 |
143 |
2.6 |
0.27 (0.4%) |
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