SPYD Dividend Type Payments
Although SPYD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on State Street 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 Mon 1:00 PM ET):
| State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 42.20 |
42.21 |
42.21 |
-0.36 |
1.8M |
- |
0.0B |
SPYD Dividend-Like Income Using Covered Calls
With SPYD at 42.21, 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% |
1.27 |
0.3 |
| 5% |
2.11 |
0.6 |
| 10% |
4.22 |
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 |
| Dec 19 |
42.00 |
0.40 |
47 |
0.4 |
0.00 (0.0%) |
| Nov 21 |
42.00 |
0.55 |
19 |
1.8 |
0.00 (0.0%) |
| 5% Yield On SPYD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
42.00 |
0.55 |
19 |
1.8 |
0.00 (0.0%) |
| Mar 20 |
43.00 |
0.95 |
138 |
0.7 |
0.79 (1.9%) |
| 10% Yield On SPYD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
42.00 |
0.55 |
19 |
1.8 |
0.00 (0.0%) |
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