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