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 Fri 4:16 PM ET):

SPDR S&P 500 (SPY)
Bid Ask Last Change Volume P/E Market Cap
683.56 683.60 683.39 +3.71 49.0M - 716B

SPY Dividend-Like Income Using Covered Calls

With SPY at 683.39, 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% 20.50 5.6
5% 34.17 9.4
10% 68.34 18.7

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
Dec 5 681.00 5.66 8 38.3 0.00 (0.0%)
Dec 12 681.00 8.53 15 39.5 0.00 (0.0%)
5% Yield On SPY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 681.00 5.66 8 38.3 0.00 (0.0%)
Dec 12 681.00 8.53 15 39.5 0.00 (0.0%)
10% Yield On SPY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 5 681.00 5.66 8 38.3 0.00 (0.0%)
Dec 12 681.00 8.53 15 39.5 0.00 (0.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Dec 19 Expiration     Top 5 High Yield
1.NVDA dividend 6.EEM dividend   1.RZLT dividend
2.IWM dividend 7.GLD dividend   2.IMNM dividend
3.SPY dividend 8.SLV dividend   3.VTYX dividend
4.QQQ dividend 9.TLT dividend   4.PATH dividend
5.IBIT dividend 10.FXI dividend   5.IREN dividend

Want more examples? SPXV Dividend | SPYC Dividend