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
139.66	144.32	141.69	+0.61	130K	-	24B

SDY Dividend-Like Income Using Covered Calls

With SDY at 141.69, 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%	4.25	1.2
5%	7.08	1.9
10%	14.17	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 SDY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 15	145.00	1.55	50	3.1	0.68 (0.5%)
Jan 17	145.00	2.90	113	2.6	0.68 (0.5%)

5% Yield On SDY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 15	145.00	1.55	50	3.1	0.68 (0.5%)
Jan 17	145.00	2.90	113	2.6	0.68 (0.5%)

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Top 10 Open Interest For Oct 18 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	QQQ dividend	1.	ASTS dividend
2.	IWM dividend	7.	SLV dividend	2.	APLD dividend
3.	FXI dividend	8.	HYG dividend	3.	HUT dividend
4.	SPY dividend	9.	TLT dividend	4.	CLSK dividend
5.	EEM dividend	10.	GLD dividend	5.	CPRI dividend

Want more examples? SDS Dividend | SE Dividend