XES Dividend Type Payments
Although XES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Series Trust SPDR S&P Oil & Gas Equipment & Services ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:15 PM ET):
| SPDR Series Trust SPDR S&P Oil & Gas Equipment & Services ETF (XES) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 73.74 |
73.81 |
73.95 |
+0.78 |
76K |
- |
0.0B |
XES Dividend-Like Income Using Covered Calls
With XES at 73.95, 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% |
2.22 |
0.6 |
| 5% |
3.70 |
1.0 |
| 10% |
7.40 |
2.0 |
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 XES Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
74.00 |
2.80 |
60 |
4.7 |
0.19 (0.3%) |
| Nov 21 |
74.00 |
2.50 |
32 |
7.8 |
0.19 (0.3%) |
| 5% Yield On XES Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
74.00 |
2.80 |
60 |
4.7 |
0.19 (0.3%) |
| Nov 21 |
74.00 |
2.50 |
32 |
7.8 |
0.19 (0.3%) |
| 10% Yield On XES Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
74.00 |
2.80 |
60 |
4.7 |
0.19 (0.3%) |
| Nov 21 |
74.00 |
2.50 |
32 |
7.8 |
0.19 (0.3%) |
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