XYLD Dividend Type Payments
Although XYLD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X Funds Global X S&P 500 Covered Call 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):
| Global X Funds Global X S&P 500 Covered Call ETF (XYLD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 40.32 | 40.50 | 40.36 | +0.01 | 292K | - | 2.8B |
XYLD Dividend-Like Income Using Covered Calls
With XYLD at 40.36, 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% | 1.21 | 0.3 |
| 5% | 2.02 | 0.6 |
| 10% | 4.04 | 1.1 |
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:
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | QQQ dividend | 6. | EEM dividend | 1. | IEP dividend | |
| 2. | IWM dividend | 7. | TSLA dividend | 2. | INFN dividend | |
| 3. | SPY dividend | 8. | SLV dividend | 3. | PSFE dividend | |
| 4. | HYG dividend | 9. | NVDA dividend | 4. | MNDY dividend | |
| 5. | FXI dividend | 10. | TLT dividend | 5. | NOVA dividend | |
Want more examples? XYL Dividend | XYLG Dividend
