XTL Dividend Type Payments

State Street SPDR S&P Telecom ETF dividend

Although XTL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on State Street SPDR S&P Telecom ETF 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):

State Street SPDR S&P Telecom ETF (XTL)
Bid Ask Last Change Volume P/E Market Cap
148.00 152.04 149.42 -3.56 23K - 0.1B

XTL Dividend-Like Income Using Covered Calls

With XTL at 149.42, 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% 4.48 1.2
5% 7.47 2.0
10% 14.94 4.1

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 XTL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 155.00 4.70 124 3.8 2.96 (2.0%)
Jul 17 152.00 10.20 215 4.7 0.00 (0.0%)
5% Yield On XTL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 155.00 4.70 124 3.8 2.96 (2.0%)
Jul 17 152.00 10.20 215 4.7 0.00 (0.0%)
10% Yield On XTL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 17 152.00 10.20 215 4.7 0.00 (0.0%)

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