SPY Dividend Type Payments

SPDR S&P 500 dividend

Although SPY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P 500 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

SPDR S&P 500 (SPY)
Bid Ask Last Change Volume P/E Market Cap
652.06 652.07 652.21 +1.88 71.1M - 685B

SPY Dividend-Like Income Using Covered Calls

With SPY at 652.21, 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% 19.57 5.4
5% 32.61 8.9
10% 65.22 17.9

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 SPY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 3 649.00 9.60 24 27.2 0.00 (0.0%)
Oct 10 649.00 11.18 31 26.2 0.00 (0.0%)
5% Yield On SPY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 3 649.00 9.60 24 27.2 0.00 (0.0%)
Oct 10 649.00 11.18 31 26.2 0.00 (0.0%)
10% Yield On SPY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 3 649.00 9.60 24 27.2 0.00 (0.0%)
Oct 10 649.00 11.18 31 26.2 0.00 (0.0%)

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Top 10 Open Interest For Sep 19 Expiration     Top 5 High Yield
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3.IWM dividend 8.SLV dividend   3.ADBE dividend
4.SPY dividend 9.FXI dividend   4.ASTS dividend
5.EEM dividend 10.TSLA dividend   5.RH dividend

Want more examples? SPXV Dividend | SPYC Dividend