KCE Dividend Type Payments
Although KCE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Capital Markets ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:05 AM ET):
| SPDR S&P Capital Markets ETF (KCE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 143.02 |
143.30 |
143.45 |
-0.36 |
1K |
- |
0.2B |
KCE Dividend-Like Income Using Covered Calls
With KCE at 143.45, 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% |
4.30 |
1.2 |
| 5% |
7.17 |
2.0 |
| 10% |
14.35 |
3.9 |
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 KCE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
145.00 |
1.20 |
31 |
3.9 |
1.70 (1.2%) |
| Jan 17 |
143.00 |
3.10 |
59 |
4.7 |
0.00 (0.0%) |
| 5% Yield On KCE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
145.00 |
1.20 |
31 |
3.9 |
1.70 (1.2%) |
| Jan 17 |
143.00 |
3.10 |
59 |
4.7 |
0.00 (0.0%) |
| 10% Yield On KCE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
143.00 |
3.10 |
59 |
4.7 |
0.00 (0.0%) |
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