XPH Dividend Type Payments

Although XPH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P PHARMACEUTICALS 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 S&P PHARMACEUTICALS (XPH)
Bid Ask Last Change Volume P/E Market Cap
44.07 45.15 44.34 +0.52 49K - 3.4B

XPH Dividend-Like Income Using Covered Calls

With XPH at 44.34, 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% 1.33 0.4
5% 2.22 0.6
10% 4.43 1.2

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 XPH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 45.00 0.55 99 0.4 0.00 (0.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.MU dividend   1.UVXY dividend
2.SPX dividend 7.FXI dividend   2.CRON dividend
3.EEM dividend 8.AMD dividend   3.TLRY dividend
4.QQQ dividend 9.XLF dividend   4.PYX dividend
5.PBR dividend 10.BABA dividend   5.AMRN dividend

Want more examples? XPER Dividend | XPO Dividend