XAR Dividend Type Payments

SPDR S&P Aerospace & Defense ETF dividend

Although XAR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Aerospace & Defense ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

SPDR S&P Aerospace & Defense ETF (XAR)
Bid Ask Last Change Volume P/E Market Cap
196.40 201.41 197.83 -0.61 224K - 0.2B

XAR Dividend-Like Income Using Covered Calls

With XAR at 197.83, 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% 5.93 1.6
5% 9.89 2.7
10% 19.78 5.4

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 XAR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 205.00 4.60 127 3.6 3.59 (1.8%)
Jan 16 205.00 8.10 218 3.7 3.59 (1.8%)
5% Yield On XAR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 205.00 4.60 127 3.6 3.59 (1.8%)
Jan 16 205.00 8.10 218 3.7 3.59 (1.8%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Jun 20 Expiration     Top 5 High Yield
1.NVDA dividend 6.TSLA dividend   1.AES dividend
2.SPY dividend 7.GLD dividend   2.DYN dividend
3.QQQ dividend 8.EEM dividend   3.RUN dividend
4.SLV dividend 9.FXI dividend   4.ALT dividend
5.IWM dividend 10.TLT dividend   5.CAPR dividend

Want more examples? XAIR Dividend | XBI Dividend