SPTM Dividend Type Payments
Although SPTM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Portfolio S&P 1500 Composite Stock Market ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 75.93 |
76.96 |
76.44 |
+1.12 |
468K |
- |
1.9B |
SPTM Dividend-Like Income Using Covered Calls
With SPTM at 76.44, 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% |
2.29 |
0.6 |
| 5% |
3.82 |
1.0 |
| 10% |
7.64 |
2.1 |
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 SPTM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
77.00 |
0.20 |
12 |
1.7 |
0.04 (0.1%) |
| Sep 19 |
77.00 |
1.00 |
47 |
2.1 |
0.04 (0.1%) |
| 5% Yield On SPTM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
77.00 |
0.20 |
12 |
1.7 |
0.04 (0.1%) |
| Sep 19 |
77.00 |
1.00 |
47 |
2.1 |
0.04 (0.1%) |
| 10% Yield On SPTM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
77.00 |
1.00 |
47 |
2.1 |
0.04 (0.1%) |
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