SPY Dividend Type Payments
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 |
588.04 | 588.05 | 587.73 | -3.42 | 61.8M | 87 | 623B |
SPY Dividend-Like Income Using Covered Calls
With SPY at 587.73, 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% | 17.63 | 4.8 |
5% | 29.39 | 8.1 |
10% | 58.77 | 16.1 |
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 | |
Jul 3 | 586.00 | 13.44 | 37 | 30.8 | 0.00 (0.0%) | |
Jun 6 | 586.00 | 7.78 | 10 | 57.3 | 0.00 (0.0%) |
5% Yield On SPY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jul 3 | 586.00 | 13.44 | 37 | 30.8 | 0.00 (0.0%) | |
Jun 6 | 586.00 | 7.78 | 10 | 57.3 | 0.00 (0.0%) |
10% Yield On SPY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jul 3 | 586.00 | 13.44 | 37 | 30.8 | 0.00 (0.0%) | |
Jun 6 | 586.00 | 7.78 | 10 | 57.3 | 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. | ELF dividend | |
2. | SPY dividend | 7. | EEM dividend | 2. | APLD dividend | |
3. | SLV dividend | 8. | FXI dividend | 3. | RXRX dividend | |
4. | QQQ dividend | 9. | TSLA dividend | 4. | SFIX dividend | |
5. | GLD dividend | 10. | TLT dividend | 5. | OKLO dividend |
Want more examples? SPXV Dividend | SPYC Dividend