SPTM Dividend Type Payments
Although SPTM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Portfolio S&P 1500 Composite Stock Market 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 Portfolio S&P 1500 Composite Stock Market ETF (SPTM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 80.01 |
80.94 |
80.35 |
+0.41 |
725K |
- |
2.0B |
SPTM Dividend-Like Income Using Covered Calls
With SPTM at 80.35, 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% |
2.41 |
0.7 |
| 5% |
4.02 |
1.1 |
| 10% |
8.04 |
2.2 |
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 SPTM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
81.00 |
1.40 |
36 |
3.9 |
0.06 (0.1%) |
| Mar 20 |
85.00 |
1.20 |
155 |
0.8 |
4.06 (5.1%) |
| 5% Yield On SPTM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
81.00 |
1.40 |
36 |
3.9 |
0.06 (0.1%) |
| 10% Yield On SPTM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
81.00 |
1.40 |
36 |
3.9 |
0.06 (0.1%) |
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