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 ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

SPDR S&P Semiconductor ETF (XSD)
Bid Ask Last Change Volume P/E Market Cap
77.24 78.32 77.87 +0.66 137K - 0.0B

XSD Dividend-Like Income Using Covered Calls

With XSD at 77.87, 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% 3.89 1.1
10% 7.79 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
Mar 15 80.00 0.40 24 1.7 1.68 (2.2%)
Apr 18 83.00 0.40 58 0.7 4.68 (6.0%)
5% Yield On XSD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 80.00 0.40 24 1.7 1.68 (2.2%)
Apr 18 82.00 0.70 58 1.2 3.68 (4.7%)
10% Yield On XSD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 79.00 1.00 24 4.2 0.68 (0.9%)
Apr 18 80.00 1.30 58 2.2 1.68 (2.2%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.VIPS dividend
2.EEM dividend 7.GE dividend   2.ROKU dividend
3.SPY dividend 8.BAC dividend   3.FSLR dividend
4.QQQ dividend 9.XOP dividend   4.IQ dividend
5.FXI dividend 10.LLY dividend   5.TTD dividend

Want more examples? XRX Dividend | XSLV Dividend