XLC Dividend Type Payments

Although XLC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on State Street Communication Services Select Sector SPDR 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 Communication Services Select Sector SPDR ETF (XLC)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
119.19	120.97	119.67	-0.41	7.5M	-	21B

XLC Dividend-Like Income Using Covered Calls

With XLC at 119.67, 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%	3.59	1.0
5%	5.98	1.6
10%	11.97	3.3

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:

3% Yield On XLC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Feb 6	121.00	0.05	5	1.0	0.03 (0.0%)
Jun 18	121.00	2.75	137	2.0	0.03 (0.0%)

5% Yield On XLC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 18	121.00	2.75	137	2.0	0.03 (0.0%)
Sep 18	121.00	4.80	229	2.1	0.03 (0.0%)

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Want more examples? XLB Dividend | XLE Dividend