XAR Dividend Type Payments
Although XAR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Aerospace & Defense ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
SPDR S&P Aerospace & Defense ETF (XAR) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
161.21 | 166.91 | 164.10 | +2.31 | 156K | - | 0.2B |
XAR Dividend-Like Income Using Covered Calls
With XAR at 164.10, 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% | 4.92 | 1.3 |
5% | 8.21 | 2.2 |
10% | 16.41 | 4.5 |
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 XAR Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 17 | 167.00 | 2.35 | 32 | 7.3 | 0.09 (0.1%) | |
Oct 17 | 167.00 | 6.10 | 215 | 2.8 | 0.09 (0.1%) |
5% Yield On XAR Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 17 | 167.00 | 2.35 | 32 | 7.3 | 0.09 (0.1%) | |
Oct 17 | 167.00 | 6.10 | 215 | 2.8 | 0.09 (0.1%) |
10% Yield On XAR Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 17 | 167.00 | 2.35 | 32 | 7.3 | 0.09 (0.1%) | |
Jul 18 | 167.00 | 6.10 | 124 | 4.9 | 0.09 (0.1%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | ZIM dividend | |
2. | SPY dividend | 7. | TSLA dividend | 2. | ASO dividend | |
3. | IWM dividend | 8. | KWEB dividend | 3. | RGTI dividend | |
4. | FXI dividend | 9. | INTC dividend | 4. | SOUN dividend | |
5. | QQQ dividend | 10. | TLT dividend | 5. | WSM dividend |
Want more examples? XAIR Dividend | XBI Dividend