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 Tue 4:16 PM ET):

SPDR S&P 500 (SPY)
Bid Ask Last Change Volume P/E Market Cap
537.61 537.64 537.61 -1.51 53.2M 79 568B

SPY Dividend-Like Income Using Covered Calls

With SPY at 537.61, 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% 16.13 4.4
5% 26.88 7.4
10% 53.76 14.7

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
May 2 535.00 14.49 18 65.8 0.00 (0.0%)
May 9 535.00 16.73 25 56.4 0.00 (0.0%)
5% Yield On SPY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 535.00 14.49 18 65.8 0.00 (0.0%)
May 9 535.00 16.73 25 56.4 0.00 (0.0%)
10% Yield On SPY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 535.00 14.49 18 65.8 0.00 (0.0%)
May 9 535.00 16.73 25 56.4 0.00 (0.0%)

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Want more examples? SPXV Dividend | SPYC Dividend