SPY Dividend Type Payments

SPDR S&P 500 dividend

Although SPY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P 500 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 S&P 500 (SPY)
Bid Ask Last Change Volume P/E Market Cap
269.51 269.55 269.10 -4.63 95.6M - 2,586B

SPY Dividend-Like Income Using Covered Calls

With SPY at 269.10, 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% 8.07 2.2
5% 13.46 3.7
10% 26.91 7.4

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 SPY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 23 276.50 0.12 5 2.4 6.95 (2.6%)
Nov 30 280.00 0.28 12 2.3 10.45 (3.9%)
5% Yield On SPY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 23 275.50 0.20 5 4.0 5.95 (2.2%)
Nov 30 278.50 0.45 12 3.8 8.95 (3.3%)
10% Yield On SPY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 23 274.00 0.43 5 8.6 4.45 (1.7%)
Nov 30 276.00 0.92 12 7.7 6.45 (2.4%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.UVXY dividend
2.SPX dividend 7.IWM dividend   2.VOD dividend
3.EEM dividend 8.PBR dividend   3.AMD dividend
4.QQQ dividend 9.F dividend   4.GBT dividend
5.EWZ dividend 10.BAC dividend   5.TSRO dividend

Want more examples? SPXV Dividend | SPYB Dividend