XLI Dividend Type Payments

Although XLI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Select Sector Fund - Industrial 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 Select Sector Fund - Industrial (XLI)
Bid Ask Last Change Volume P/E Market Cap
130.69 131.03 131.13 +2.35 8.9M - 20B

XLI Dividend-Like Income Using Covered Calls

With XLI at 131.13, 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% 3.93 1.1
5% 6.56 1.8
10% 13.11 3.6

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 XLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 4 132.00 1.48 22 6.7 0.97 (0.7%)
Apr 11 131.00 0.65 29 2.1 0.00 (0.0%)
5% Yield On XLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 4 132.00 1.48 22 6.7 0.97 (0.7%)
Apr 11 131.00 0.65 29 2.1 0.00 (0.0%)
10% Yield On XLI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 4 132.00 1.48 22 6.7 0.97 (0.7%)
Mar 28 132.00 1.07 15 7.1 0.97 (0.7%)

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Want more examples? XLG Dividend | XLK Dividend