XLP Dividend Type Payments

Although XLP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Select Sector Fund - Consumer Staples 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):

SPDR Select Sector Fund - Consumer Staples (XLP)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
80.75	81.11	80.97	+0.42	12.0M	-	11B

XLP Dividend-Like Income Using Covered Calls

With XLP at 80.97, 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%	2.43	0.7
5%	4.05	1.1
10%	8.10	2.2

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 XLP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 1	82.50	0.46	33	1.4	1.39 (1.7%)
Jul 18	81.00	0.37	19	1.4	0.00 (0.0%)

5% Yield On XLP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 1	82.50	0.46	33	1.4	1.39 (1.7%)
Jul 18	81.00	0.37	19	1.4	0.00 (0.0%)

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Want more examples? XLK Dividend | XLRE Dividend