XL Dividend

XL GROUP LTD COMMON SHARES dividend

Although XL has a dividend of 0.22 with an ex-dividend date of Sep 13, you can sell covered calls on XL GROUP LTD COMMON SHARES to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:40 PM ET):

XL GROUP LTD COMMON SHARES (XL)
Bid Ask Last Change Volume P/E Market Cap
56.38 56.39 56.38 +0.02 1.3M - 15B

XL Dividend-Like Income Using Covered Calls

With XL at 56.38, 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% 1.69 0.5
5% 2.82 0.8
10% 5.64 1.5

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:

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.UVXY dividend
2.EEM dividend 7.FB dividend   2.JWN dividend
3.QQQ dividend 8.FXI dividend   3.NVDA dividend
4.SPX dividend 9.GLD dividend   4.AMAT dividend
5.BAC dividend 10.AABA dividend   5.GDS dividend

Want more examples? XKST Dividend | XLB Dividend