SDY Dividend Type Payments
Although SDY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Dividend 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 Dividend ETF (SDY) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
138.24 | 140.24 | 139.25 | +0.94 | 164K | - | 23B |
SDY Dividend-Like Income Using Covered Calls
With SDY at 139.25, 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% | 4.18 | 1.1 |
5% | 6.96 | 1.9 |
10% | 13.93 | 3.8 |
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 SDY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 19 | 140.00 | 1.85 | 64 | 2.5 | 0.00 (0.0%) | |
Nov 21 | 141.00 | 0.70 | 36 | 1.9 | 0.76 (0.5%) |
5% Yield On SDY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Dec 19 | 140.00 | 1.85 | 64 | 2.5 | 0.00 (0.0%) | |
Nov 21 | 141.00 | 0.70 | 36 | 1.9 | 0.76 (0.5%) |
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Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IBIT dividend | 6. | GLD dividend | 1. | CIFR dividend | |
2. | KVUE dividend | 7. | TLT dividend | 2. | INBX dividend | |
3. | NVDA dividend | 8. | EEM dividend | 3. | USAR dividend | |
4. | SLV dividend | 9. | INTC dividend | 4. | BHVN dividend | |
5. | HYG dividend | 10. | QQQ dividend | 5. | IREN dividend |
Want more examples? SDS Dividend | SE Dividend