XTN Dividend Type Payments
Although XTN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Transportation 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 Transportation ETF (XTN) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
39.36 | 82.94 | 78.74 | -0.02 | 5K | - | 0.4B |
XTN Dividend-Like Income Using Covered Calls
With XTN at 78.74, 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% | 2.36 | 0.6 |
5% | 3.94 | 1.1 |
10% | 7.87 | 2.2 |
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 XTN Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jul 19 | 83.00 | 0.55 | 73 | 0.8 | 0.06 (0.1%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | AAOI dividend | |
2. | SPY dividend | 7. | TSLA dividend | 2. | BYND dividend | |
3. | QQQ dividend | 8. | SLV dividend | 3. | NVAX dividend | |
4. | HYG dividend | 9. | TLT dividend | 4. | RBLX dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | MPW dividend |
Want more examples? XTL Dividend | XXII Dividend