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 Fri 4:16 PM ET):
| SPDR S&P Semiconductor ETF (XSD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 200.71 |
208.80 |
204.10 |
+8.75 |
61K |
- |
0.8B |
XSD Dividend-Like Income Using Covered Calls
With XSD at 204.10, here's a table showing how big the annual "dividend" (i.e. 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% |
6.12 |
1.7 |
| 5% |
10.21 |
2.8 |
| 10% |
20.41 |
5.6 |
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 |
| May 16 |
210.00 |
1.90 |
15 |
12.7 |
1.20 (0.6%) |
| Oct 17 |
210.00 |
17.20 |
169 |
10.2 |
1.20 (0.6%) |
| 5% Yield On XSD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
210.00 |
1.90 |
15 |
12.7 |
1.20 (0.6%) |
| Oct 17 |
210.00 |
17.20 |
169 |
10.2 |
1.20 (0.6%) |
| 10% Yield On XSD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
210.00 |
1.90 |
15 |
12.7 |
1.20 (0.6%) |
| Oct 17 |
210.00 |
17.20 |
169 |
10.2 |
1.20 (0.6%) |
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