SLYG Dividend Type Payments
Although SLYG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P 600 Small Cap Growth ETF (based on S&P SmallCap 600 Growth Inde 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 600 Small Cap Growth ETF (based on S&P SmallCap 600 Growth Inde (SLYG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 84.66 | 88.00 | 85.65 | -0.16 | 82K | - | 0.6B |
SLYG Dividend-Like Income Using Covered Calls
With SLYG at 85.65, 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% | 2.57 | 0.7 |
| 5% | 4.28 | 1.2 |
| 10% | 8.57 | 2.3 |
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 SLYG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 21 | 88.00 | 1.95 | 176 | 1.1 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | ALT dividend | |
| 2. | SPY dividend | 7. | EEM dividend | 2. | IONQ dividend | |
| 3. | SLV dividend | 8. | FXI dividend | 3. | BBAI dividend | |
| 4. | QQQ dividend | 9. | TSLA dividend | 4. | RGTI dividend | |
| 5. | GLD dividend | 10. | TLT dividend | 5. | LVWR dividend | |
Want more examples? SLX Dividend | SLYV Dividend
