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 Fri 4:16 PM ET):
| State Street SPDR S&P Oil & Gas Equipment & Services ETF (XES) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 76.95 |
78.73 |
77.81 |
+1.52 |
48K |
- |
0.1B |
XES Dividend-Like Income Using Covered Calls
With XES at 77.81, 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% |
2.33 |
0.6 |
| 5% |
3.89 |
1.1 |
| 10% |
7.78 |
2.1 |
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 |
80.00 |
0.95 |
29 |
3.3 |
1.27 (1.6%) |
| Jan 16 |
79.00 |
2.20 |
57 |
3.9 |
0.27 (0.3%) |
| 5% Yield On XES Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
80.00 |
0.95 |
29 |
3.3 |
1.27 (1.6%) |
| Jan 16 |
79.00 |
2.20 |
57 |
3.9 |
0.27 (0.3%) |
| 10% Yield On XES Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
80.00 |
0.95 |
29 |
3.3 |
1.27 (1.6%) |
| Jan 16 |
79.00 |
2.20 |
57 |
3.9 |
0.27 (0.3%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
