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 Fri 4:16 PM ET):
| First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 129.67 | 131.78 | 130.92 | +0.09 | 63K | - | 2.2B |
QQEW Dividend-Like Income Using Covered Calls
With QQEW at 130.92, 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% | 3.93 | 1.1 |
| 5% | 6.55 | 1.8 |
| 10% | 13.09 | 3.6 |
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 QQEW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 132.00 | 1.35 | 77 | 1.8 | 0.22 (0.2%) | |
| Jul 18 | 132.00 | 2.70 | 169 | 1.6 | 0.22 (0.2%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | LUMN dividend | |
| 2. | TLT dividend | 7. | SLV dividend | 2. | AFRM dividend | |
| 3. | SPY dividend | 8. | QQQ dividend | 3. | QBTS dividend | |
| 4. | IWM dividend | 9. | KWEB dividend | 4. | BYON dividend | |
| 5. | FXI dividend | 10. | IBIT dividend | 5. | SYM dividend | |
Want more examples? QPX Dividend | QQH Dividend
