XHS Dividend Type Payments

SPDR S&P Health Care Services ETF dividend

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 Mon 4:16 PM ET):

SPDR S&P Health Care Services ETF (XHS)
Bid Ask Last Change Volume P/E Market Cap
91.18 101.18 97.08 +0.41 4K - 0.2B

XHS Dividend-Like Income Using Covered Calls

With XHS at 97.08, 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% 2.91 0.8
5% 4.85 1.3
10% 9.71 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:

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

Want more examples? XHR Dividend | XITK Dividend