XLF Dividend Type Payments

Although XLF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Select Sector Fund - Financial to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:50 AM ET):

SPDR Select Sector Fund - Financial (XLF)
Bid Ask Last Change Volume P/E Market Cap
49.76 49.77 49.77 -0.03 9.4M - 45B

XLF Dividend-Like Income Using Covered Calls

With XLF at 49.77, 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% 1.49 0.4
5% 2.49 0.7
10% 4.98 1.4

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 XLF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 50.00 0.35 9 3.9 0.23 (0.5%)
Dec 27 50.00 0.42 16 2.6 0.23 (0.5%)
5% Yield On XLF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 50.00 0.35 9 3.9 0.23 (0.5%)
Dec 27 50.00 0.42 16 2.6 0.23 (0.5%)
10% Yield On XLF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 50.00 0.35 9 3.9 0.23 (0.5%)
Dec 27 50.00 0.42 16 2.6 0.23 (0.5%)

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Top 10 Open Interest For Dec 20 Expiration     Top 5 High Yield
1.NVDA dividend 6.IWM dividend   1.SERV dividend
2.SPY dividend 7.QQQ dividend   2.CLSK dividend
3.FXI dividend 8.KWEB dividend   3.NNE dividend
4.XLF dividend 9.TLT dividend   4.QBTS dividend
5.EEM dividend 10.EWZ dividend   5.QUBT dividend

Want more examples? XLE Dividend | XLG Dividend