SPYG Dividend Type Payments
Although SPYG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Series Trust SPDR Portfolio S&P 500 Growth 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 Growth ETF (SPYG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 87.70 |
87.90 |
87.83 |
-0.69 |
3.2M |
- |
1.3B |
SPYG Dividend-Like Income Using Covered Calls
With SPYG at 87.83, 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% |
2.63 |
0.7 |
| 5% |
4.39 |
1.2 |
| 10% |
8.78 |
2.4 |
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 SPYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 18 |
88.00 |
2.80 |
57 |
4.9 |
0.10 (0.1%) |
| Sep 19 |
88.00 |
4.80 |
120 |
4.0 |
0.10 (0.1%) |
| 5% Yield On SPYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 18 |
88.00 |
2.80 |
57 |
4.9 |
0.10 (0.1%) |
| Sep 19 |
88.00 |
4.80 |
120 |
4.0 |
0.10 (0.1%) |
| 10% Yield On SPYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 18 |
88.00 |
2.80 |
57 |
4.9 |
0.10 (0.1%) |
| Sep 19 |
88.00 |
4.80 |
120 |
4.0 |
0.10 (0.1%) |
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