SPMD Dividend Type Payments

SPDR Portfolio S&P 400 Mid Cap ETF dividend

Although SPMD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Portfolio S&P 400 Mid Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

SPDR Portfolio S&P 400 Mid Cap ETF (SPMD)
Bid Ask Last Change Volume P/E Market Cap
50.88 51.05 50.94 -0.40 1.4M - 0.2B

SPMD Dividend-Like Income Using Covered Calls

With SPMD at 50.94, 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% 1.53 0.4
5% 2.55 0.7
10% 5.09 1.4

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 SPMD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 51.00 0.70 102 0.6 0.00 (0.0%)
Nov 21 51.00 1.70 200 0.8 0.00 (0.0%)
5% Yield On SPMD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 53.00 1.20 102 1.2 1.95 (3.8%)
Nov 21 51.00 1.70 200 0.8 0.00 (0.0%)

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