XES Dividend Type Payments
Although XES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on State Street 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 Mon 4:16 PM ET):
| State Street SPDR S&P Oil & Gas Equipment & Services ETF (XES) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 97.57 |
99.39 |
99.39 |
+0.40 |
134K |
- |
0.1B |
XES Dividend-Like Income Using Covered Calls
With XES at 99.39, 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% |
2.98 |
0.8 |
| 5% |
4.97 |
1.4 |
| 10% |
9.94 |
2.7 |
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:
| 3% Yield On XES Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
100.00 |
6.60 |
137 |
4.8 |
0.61 (0.6%) |
| Sep 18 |
100.00 |
9.40 |
229 |
4.1 |
0.61 (0.6%) |
| 5% Yield On XES Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
100.00 |
6.60 |
137 |
4.8 |
0.61 (0.6%) |
| Sep 18 |
100.00 |
9.40 |
229 |
4.1 |
0.61 (0.6%) |
| 10% Yield On XES Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
100.00 |
6.60 |
137 |
4.8 |
0.61 (0.6%) |
| Sep 18 |
100.00 |
9.40 |
229 |
4.1 |
0.61 (0.6%) |
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