XDIV Dividend Type Payments
Although XDIV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Roundhill S&P 500 No Dividend Target ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Roundhill S&P 500 No Dividend Target ETF (XDIV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 25.05 | 40.05 | 26.74 | -0.19 | 5K | - | 0.0B |
XDIV Dividend-Like Income Using Covered Calls
With XDIV at 26.74, 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% | 0.80 | 0.2 |
| 5% | 1.34 | 0.4 |
| 10% | 2.67 | 0.7 |
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 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | KVUE dividend | 6. | HYG dividend | 1. | DBRG dividend | |
| 2. | IBIT dividend | 7. | GLD dividend | 2. | CRML dividend | |
| 3. | NVDA dividend | 8. | TLT dividend | 3. | PSO dividend | |
| 4. | SLV dividend | 9. | EEM dividend | 4. | ARCT dividend | |
| 5. | FXI dividend | 10. | INTC dividend | 5. | ABAT dividend | |
Want more examples? XCEM Dividend | XEL Dividend
