XAR Dividend Type Payments

Although XAR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on State Street 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 Fri 4:16 PM ET):

State Street SPDR S&P Aerospace & Defense ETF (XAR)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
218.50	222.16	220.08	+1.33	147K	-	0.2B

XAR Dividend-Like Income Using Covered Calls

With XAR at 220.08, 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%	6.60	1.8
5%	11.00	3.0
10%	22.01	6.0

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
Jan 16	225.00	2.10	57	3.7	2.84 (1.3%)
Apr 17	225.00	7.30	148	4.9	2.84 (1.3%)

5% Yield On XAR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 16	225.00	2.10	57	3.7	2.84 (1.3%)
Apr 17	225.00	7.30	148	4.9	2.84 (1.3%)

10% Yield On XAR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 16	230.00	3.60	57	6.3	7.84 (3.6%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Dec 19 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	EEM dividend	1.	RZLT dividend
2.	IWM dividend	7.	SLV dividend	2.	IMNM dividend
3.	SPY dividend	8.	TLT dividend	3.	VTYX dividend
4.	IBIT dividend	9.	GLD dividend	4.	JANX dividend
5.	QQQ dividend	10.	NFLX dividend	5.	CIFR dividend

Want more examples? XAIR Dividend | XBI Dividend