XHE Dividend Type Payments

SPDR S&P Health Care Equipment dividend

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