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 Tue 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 |
| 45.50 | 46.54 | 45.71 | -0.47 | 756K | - | 0.0B |
SPYD Dividend-Like Income Using Covered Calls
With SPYD at 45.71, 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% | 1.37 | 0.4 |
| 5% | 2.29 | 0.6 |
| 10% | 4.57 | 1.3 |
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:
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | IWM dividend | 1. | ZI dividend | |
| 2. | NVDA dividend | 7. | EEM dividend | 2. | GRPN dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | PRMW dividend | |
| 4. | SLV dividend | 9. | EWZ dividend | 4. | RKT dividend | |
| 5. | TSLA dividend | 10. | SMCI dividend | 5. | CART dividend | |
Want more examples? SPYC Dividend | SPYG Dividend
