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 Tue 4:16 PM ET):
| State Street SPDR S&P Aerospace & Defense ETF (XAR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 276.00 | 284.58 | 278.46 | +8.18 | 313K | - | 0.3B |
XAR Dividend-Like Income Using Covered Calls
With XAR at 278.46, 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% | 8.35 | 2.3 |
| 5% | 13.92 | 3.8 |
| 10% | 27.85 | 7.6 |
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 | 285.00 | 7.00 | 74 | 9.5 | 0.42 (0.2%) | |
| Jul 17 | 285.00 | 14.00 | 165 | 8.5 | 0.42 (0.2%) | |
| 5% Yield On XAR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 285.00 | 7.00 | 74 | 9.5 | 0.42 (0.2%) | |
| Jul 17 | 285.00 | 14.00 | 165 | 8.5 | 0.42 (0.2%) | |
| 10% Yield On XAR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 285.00 | 7.00 | 74 | 9.5 | 0.42 (0.2%) | |
| Jul 17 | 285.00 | 14.00 | 165 | 8.5 | 0.42 (0.2%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | SNAP dividend | |
| 2. | NVDA dividend | 7. | EWZ dividend | 2. | CMG dividend | |
| 3. | KWEB dividend | 8. | INTC dividend | 3. | SMCI dividend | |
| 4. | GLD dividend | 9. | SPY dividend | 4. | IREN dividend | |
| 5. | IBIT dividend | 10. | CORZ dividend | 5. | EOSE dividend | |
Want more examples? WYNN Dividend | XBI Dividend
