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 Fri 4:16 PM ET):
| SPDR Series Trust SPDR S&P Oil & Gas Equipment & Services ETF (XES) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 68.11 |
71.63 |
69.45 |
+2.29 |
26K |
- |
0.0B |
XES Dividend-Like Income Using Covered Calls
With XES at 69.45, 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% |
2.08 |
0.6 |
| 5% |
3.47 |
1.0 |
| 10% |
6.95 |
1.9 |
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 |
| Apr 17 |
72.00 |
1.65 |
35 |
4.7 |
0.37 (0.5%) |
| Sep 19 |
74.00 |
4.70 |
190 |
2.5 |
2.37 (3.4%) |
| 5% Yield On XES Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
72.00 |
1.65 |
35 |
4.7 |
0.37 (0.5%) |
| Sep 19 |
74.00 |
4.70 |
190 |
2.5 |
2.37 (3.4%) |
| 10% Yield On XES Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
72.00 |
1.65 |
35 |
4.7 |
0.37 (0.5%) |
| Sep 19 |
74.00 |
4.70 |
190 |
2.5 |
2.37 (3.4%) |
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