XHS Dividend Type Payments
Although XHS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Health Care 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 12:10 PM ET):
SPDR S&P Health Care Services ETF (XHS) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
100.39 | 100.61 | 99.54 | -0.62 | 0K | - | 0.2B |
XHS Dividend-Like Income Using Covered Calls
With XHS at 99.54, 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% | 2.99 | 0.8 |
5% | 4.98 | 1.4 |
10% | 9.95 | 2.7 |
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 XHS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 19 | 101.00 | 1.25 | 67 | 1.9 | 0.39 (0.4%) | |
Nov 21 | 101.00 | 0.45 | 39 | 1.2 | 0.39 (0.4%) |
5% Yield On XHS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 19 | 101.00 | 1.25 | 67 | 1.9 | 0.39 (0.4%) | |
Mar 20 | 101.00 | 3.10 | 158 | 2.0 | 0.39 (0.4%) |
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Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | SLV dividend | 1. | ABAT dividend | |
2. | IBIT dividend | 7. | INTC dividend | 2. | POWI dividend | |
3. | GLD dividend | 8. | AMZN dividend | 3. | TMQ dividend | |
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5. | TSLA dividend | 10. | IWM dividend | 5. | SOC dividend |
Want more examples? XHR Dividend | XITK Dividend