XSD Dividend Type Payments
Although XSD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P SEMICONDUCTOR 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 S&P SEMICONDUCTOR (XSD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 75.05 | 76.80 | 75.44 | +0.21 | 95K | - | 3.2B |
XSD Dividend-Like Income Using Covered Calls
With XSD at 75.44, 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% | 2.26 | 0.6 |
| 5% | 3.77 | 1.0 |
| 10% | 7.54 | 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 XSD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 21 | 77.00 | 0.65 | 40 | 1.6 | 0.20 (0.3%) | |
| Oct 19 | 78.00 | 0.70 | 68 | 1.0 | 1.20 (1.6%) | |
| 5% Yield On XSD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 21 | 77.00 | 0.65 | 40 | 1.6 | 0.20 (0.3%) | |
| Oct 19 | 77.00 | 1.15 | 68 | 1.7 | 0.20 (0.3%) | |
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| Top 10 Open Interest For Aug 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | BAC dividend | 1. | SSTK dividend | |
| 2. | EEM dividend | 7. | AABA dividend | 2. | UVXY dividend | |
| 3. | QQQ dividend | 8. | FXI dividend | 3. | VIPS dividend | |
| 4. | SPX dividend | 9. | GLD dividend | 4. | HUYA dividend | |
| 5. | XLF dividend | 10. | FB dividend | 5. | SWCH dividend | |
Want more examples? XRX Dividend | XSLV Dividend
