QQQE Dividend Type Payments
Although QQQE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion NASDAQ-100 Equal Weighted Index Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 99.02 | 100.97 | 98.96 | -0.41 | 71K | - | 0.5B |
QQQE Dividend-Like Income Using Covered Calls
With QQQE at 98.96, 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% | 2.97 | 0.8 |
| 5% | 4.95 | 1.4 |
| 10% | 9.90 | 2.7 |
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 QQQE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 105.00 | 1.65 | 163 | 1.0 | 4.03 (4.1%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | HTZ dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | AEVA dividend | |
| 3. | SPY dividend | 8. | IBIT dividend | 3. | HUT dividend | |
| 4. | TSLA dividend | 9. | TLT dividend | 4. | IREN dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | ENVX dividend | |
Want more examples? QQQ Dividend | QQQJ Dividend
