XHE Dividend Type Payments
Although XHE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Health Care Equipment 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 S&P Health Care Equipment (XHE) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
77.28 | 86.62 | 82.46 | +1.41 | 11K | - | 0.1B |
XHE Dividend-Like Income Using Covered Calls
With XHE at 82.46, 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% | 2.47 | 0.7 |
5% | 4.12 | 1.1 |
10% | 8.25 | 2.3 |
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 Mar 21 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | QBTS dividend | |
2. | SPY dividend | 7. | KWEB dividend | 2. | ZIM dividend | |
3. | IWM dividend | 8. | TSLA dividend | 3. | RGTI dividend | |
4. | FXI dividend | 9. | INTC dividend | 4. | SLNO dividend | |
5. | QQQ dividend | 10. | TLT dividend | 5. | SOUN dividend |
Want more examples? XHB Dividend | XHR Dividend