KIE Dividend Type Payments
Although KIE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Insurance 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):
SPDR S&P Insurance ETF (KIE) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
56.87 |
58.22 |
57.72 |
+0.03 |
1.3M |
- |
0.7B |
KIE Dividend-Like Income Using Covered Calls
With KIE at 57.72, 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% |
1.73 |
0.5 |
5% |
2.89 |
0.8 |
10% |
5.77 |
1.6 |
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 KIE Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jul 18 |
58.00 |
1.50 |
57 |
2.2 |
0.00 (0.0%) |
Sep 19 |
58.00 |
2.60 |
120 |
2.0 |
0.00 (0.0%) |
5% Yield On KIE Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jul 18 |
58.00 |
1.50 |
57 |
2.2 |
0.00 (0.0%) |
Sep 19 |
58.00 |
2.60 |
120 |
2.0 |
0.00 (0.0%) |
10% Yield On KIE Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jul 18 |
58.00 |
1.50 |
57 |
2.2 |
0.00 (0.0%) |
Sep 19 |
58.00 |
2.60 |
120 |
2.0 |
0.00 (0.0%) |
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