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
278.97 278.98 279.34 -0.25 40.9M - 2,586B

SPY Dividend-Like Income Using Covered Calls

With SPY at 279.34, 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% 8.38 2.3
5% 13.97 3.8
10% 27.93 7.7

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
Jul 20 282.00 0.15 5 3.0 3.02 (1.1%)
Jul 27 283.00 0.35 12 2.9 4.02 (1.4%)
5% Yield On SPY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 281.50 0.23 5 4.6 2.52 (0.9%)
Jul 27 282.00 0.55 12 4.6 3.02 (1.1%)
10% Yield On SPY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 280.50 0.47 5 9.4 1.52 (0.5%)
Jul 27 280.50 1.06 12 8.8 1.52 (0.5%)

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Top 10 Open Interest For Jul 20 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.AAPL dividend
2.EEM dividend 7.MU dividend   2.NFLX dividend
3.XLF dividend 8.T dividend   3.SKX dividend
4.BAC dividend 9.QQQ dividend   4.IQ dividend
5.EWZ dividend 10.FXI dividend   5.HUYA dividend

Want more examples? SPXV Dividend | SPYB Dividend