XES Dividend Type Payments
Although XES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Series Trust SPDR S&P Oil & Gas Equipment & Services ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| SPDR Series Trust SPDR S&P Oil & Gas Equipment & Services ETF (XES) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 87.60 |
97.64 |
92.41 |
+1.82 |
86K |
- |
0.1B |
XES Dividend-Like Income Using Covered Calls
With XES at 92.41, 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% |
2.77 |
0.8 |
| 5% |
4.62 |
1.3 |
| 10% |
9.24 |
2.5 |
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 XES Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
100.00 |
0.35 |
25 |
1.4 |
2.36 (2.6%) |
| Jun 21 |
100.00 |
0.70 |
60 |
1.2 |
2.36 (2.6%) |
| 5% Yield On XES Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 17 |
100.00 |
0.35 |
25 |
1.4 |
2.36 (2.6%) |
| Jun 21 |
101.00 |
1.35 |
60 |
2.3 |
3.36 (3.6%) |
| 10% Yield On XES Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 21 |
98.00 |
2.00 |
60 |
3.3 |
0.36 (0.4%) |
| Sep 20 |
100.00 |
4.10 |
151 |
2.7 |
2.36 (2.6%) |
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