XSP Dividend Type Payments

Although XSP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MINI S&P 500 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):

MINI S&P 500 (XSP)
Bid Ask Last Change Volume P/E Market Cap
281.84 281.84 281.84 -2.16 0K - 0.0B

XSP Dividend-Like Income Using Covered Calls

With XSP at 281.84, 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% 8.46 2.3
5% 14.09 3.9
10% 28.18 7.7

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 XSP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 285.00 0.08 3 2.7 3.16 (1.1%)
Aug 24 286.00 0.31 10 3.1 4.16 (1.5%)
5% Yield On XSP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 284.50 0.14 3 4.7 2.66 (0.9%)
Aug 24 285.50 0.42 10 4.2 3.66 (1.3%)
10% Yield On XSP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 284.00 0.24 3 8.0 2.16 (0.8%)
Aug 24 284.00 0.94 10 9.4 2.16 (0.8%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.NVDA dividend
2.EEM dividend 7.FB dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.GLD dividend   4.GDS dividend
5.BAC dividend 10.AABA dividend   5.AMAT dividend

Want more examples? XSOE Dividend | XSPA Dividend