QQEW Dividend Type Payments
Although QQEW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust NASDAQ-100 Equal Weighted Index Fund 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):
First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
139.58 | 142.20 | 140.69 | +2.17 | 55K | - | 2.0B |
QQEW Dividend-Like Income Using Covered Calls
With QQEW at 140.69, 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% | 4.22 | 1.2 |
5% | 7.03 | 1.9 |
10% | 14.07 | 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 QQEW Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 21 | 142.00 | 1.30 | 40 | 2.8 | 0.00 (0.0%) | |
Jan 16 | 142.00 | 2.00 | 96 | 1.9 | 0.00 (0.0%) |
5% Yield On QQEW Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 21 | 142.00 | 1.30 | 40 | 2.8 | 0.00 (0.0%) | |
Jan 16 | 144.00 | 2.05 | 96 | 2.1 | 1.80 (1.3%) |
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Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | TSLA dividend | 1. | ARCT dividend | |
2. | IBIT dividend | 7. | INTC dividend | 2. | NVTS dividend | |
3. | GLD dividend | 8. | QQQ dividend | 3. | HIVE dividend | |
4. | SPY dividend | 9. | IWM dividend | 4. | AAOI dividend | |
5. | SLV dividend | 10. | AMZN dividend | 5. | BTBT dividend |
Want more examples? QPX Dividend | QQH Dividend