XSD Dividend Type Payments
Although XSD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on State Street SPDR S&P Semiconductor 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 SPDR S&P Semiconductor ETF (XSD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 317.63 |
324.43 |
317.44 |
-3.90 |
55K |
- |
1.3B |
XSD Dividend-Like Income Using Covered Calls
With XSD at 317.44, 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% |
9.52 |
2.6 |
| 5% |
15.87 |
4.3 |
| 10% |
31.74 |
8.7 |
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 XSD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
325.00 |
6.50 |
19 |
34.2 |
0.57 (0.2%) |
| Jan 16 |
325.00 |
12.10 |
47 |
25.7 |
0.57 (0.2%) |
| 5% Yield On XSD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
325.00 |
6.50 |
19 |
34.2 |
0.57 (0.2%) |
| Jan 16 |
325.00 |
12.10 |
47 |
25.7 |
0.57 (0.2%) |
| 10% Yield On XSD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
325.00 |
6.50 |
19 |
34.2 |
0.57 (0.2%) |
| Jan 16 |
325.00 |
12.10 |
47 |
25.7 |
0.57 (0.2%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
