XLI Dividend Type Payments

Although XLI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Select Sector Fund - Industrial 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 Select Sector Fund - Industrial (XLI)
Bid Ask Last Change Volume P/E Market Cap
77.77 78.35 78.07 -0.32 4.5M - 0.0B

XLI Dividend-Like Income Using Covered Calls

With XLI at 78.07, 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% 2.34 0.6
5% 3.90 1.1
10% 7.81 2.1

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 XLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 79.00 0.09 5 1.8 0.65 (0.8%)
Jul 26 79.50 0.15 12 1.3 1.15 (1.5%)
5% Yield On XLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 79.00 0.09 5 1.8 0.65 (0.8%)
Jul 26 79.50 0.15 12 1.3 1.15 (1.5%)
10% Yield On XLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 78.50 0.21 5 4.2 0.15 (0.2%)
Jul 26 79.00 0.28 12 2.3 0.65 (0.8%)

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Want more examples? XLG Dividend | XLK Dividend