SPYD Dividend Type Payments
Although SPYD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Series Trust SPDR Portfolio S&P 500 High Dividend 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 Series Trust SPDR Portfolio S&P 500 High Dividend ETF (SPYD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 45.10 | 45.69 | 45.16 | -0.12 | 902K | - | 0.0B |
SPYD Dividend-Like Income Using Covered Calls
With SPYD at 45.16, 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% | 1.35 | 0.4 |
| 5% | 2.26 | 0.6 |
| 10% | 4.52 | 1.2 |
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 SPYD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 46.00 | 0.40 | 57 | 0.7 | 0.31 (0.7%) | |
| Oct 18 | 46.00 | 0.15 | 29 | 0.5 | 0.31 (0.7%) | |
| 5% Yield On SPYD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 46.00 | 0.40 | 57 | 0.7 | 0.31 (0.7%) | |
| Dec 20 | 46.00 | 0.75 | 92 | 0.8 | 0.31 (0.7%) | |
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| Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | RLAY dividend | |
| 2. | IWM dividend | 7. | GLD dividend | 2. | LUNR dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | MARA dividend | |
| 4. | QQQ dividend | 9. | EEM dividend | 4. | CPRI dividend | |
| 5. | HYG dividend | 10. | AAPL dividend | 5. | MBLY dividend | |
Want more examples? SPYC Dividend | SPYG Dividend
