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 Thu 10:40 AM ET):
| First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 113.92 | 114.06 | 114.11 | +0.10 | 41K | - | 1.7B |
QQEW Dividend-Like Income Using Covered Calls
With QQEW at 114.11, 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% | 3.42 | 0.9 |
| 5% | 5.71 | 1.6 |
| 10% | 11.41 | 3.1 |
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:
| 3% Yield On QQEW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 115.00 | 0.30 | 30 | 1.0 | 0.94 (0.8%) | |
| Oct 17 | 114.00 | 4.00 | 184 | 2.1 | 0.00 (0.0%) | |
| 5% Yield On QQEW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 114.00 | 4.00 | 184 | 2.1 | 0.00 (0.0%) | |
| Jul 18 | 114.00 | 2.00 | 93 | 2.1 | 0.00 (0.0%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | TMDX dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | ROKU dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | UPST dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | STLA dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | PTON dividend | |
Want more examples? QPX Dividend | QQH Dividend
