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 Fri 4:16 PM ET):

SPDR Select Sector Fund - Industrial (XLI)
Bid Ask Last Change Volume P/E Market Cap
66.78 67.28 67.05 -0.94 14.8M - 0.0B

XLI Dividend-Like Income Using Covered Calls

With XLI at 67.05, 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% 2.01 0.6
5% 3.35 0.9
10% 6.71 1.8

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
Dec 21 70.00 0.05 8 0.6 2.72 (4.1%)
Dec 28 70.00 0.13 15 0.9 2.72 (4.1%)
5% Yield On XLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 69.50 0.10 8 1.3 2.22 (3.3%)
Dec 28 69.50 0.19 15 1.3 2.22 (3.3%)
10% Yield On XLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 69.00 0.17 8 2.1 1.72 (2.6%)
Dec 28 69.00 0.29 15 1.9 1.72 (2.6%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? XLG Dividend | XLK Dividend