XSW Dividend Type Payments

Although XSW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on State Street SPDR S&P Software & Services 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 Software & Services ETF (XSW)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
180.81	186.61	184.77	-1.62	7K	-	0.1B

XSW Dividend-Like Income Using Covered Calls

With XSW at 184.77, 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%	5.54	1.5
5%	9.24	2.5
10%	18.48	5.1

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 XSW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	186.00	2.65	19	10.7	0.00 (0.0%)
Jan 16	186.00	4.90	47	9.1	0.00 (0.0%)

5% Yield On XSW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	186.00	2.65	19	10.7	0.00 (0.0%)
Jan 16	186.00	4.90	47	9.1	0.00 (0.0%)

10% Yield On XSW Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	186.00	2.65	19	10.7	0.00 (0.0%)
Jan 16	186.00	4.90	47	9.1	0.00 (0.0%)

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Want more examples? XSVM Dividend | XT Dividend