XDE Dividend Type Payments

Although XDE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PHLX EUR CURRENCY INDEX to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:50 PM ET):

PHLX EUR CURRENCY INDEX (XDE)
Bid Ask Last Change Volume P/E Market Cap
115.14 115.14 115.14 +0.61 0K - 0.0B

XDE Dividend-Like Income Using Covered Calls

With XDE at 115.14, 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% 3.45 0.9
5% 5.76 1.6
10% 11.51 3.2

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 XDE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 116.50 0.38 29 1.3 1.36 (1.2%)
Dec 21 117.00 0.77 64 1.2 1.86 (1.6%)
5% Yield On XDE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 116.00 0.56 29 1.9 0.86 (0.7%)
Dec 21 116.00 1.21 64 1.9 0.86 (0.7%)
10% Yield On XDE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 115.00 1.07 29 3.2 0.00 (0.0%)

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

 
Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.AMD dividend
2.EWZ dividend 7.FXI dividend   2.SNAP dividend
3.EEM dividend 8.VXX dividend   3.UVXY dividend
4.PBR dividend 9.IWM dividend   4.TWTR dividend
5.QQQ dividend 10.BAC dividend   5.AMRN dividend

Want more examples? XDC Dividend | XDIV Dividend