XYLD Dividend Type Payments
Although XYLD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X S&P 500 Covered Call ETF 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):
| Global X S&P 500 Covered Call ETF (XYLD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 40.26 | 40.80 | 40.74 | -0.04 | 765K | - | 3.1B |
XYLD Dividend-Like Income Using Covered Calls
With XYLD at 40.74, 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% | 1.22 | 0.3 |
| 5% | 2.04 | 0.6 |
| 10% | 4.07 | 1.1 |
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 XYLD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 41.00 | 0.10 | 22 | 0.5 | 0.20 (0.5%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | BE dividend | |
| 2. | SLV dividend | 7. | EWZ dividend | 2. | OCUL dividend | |
| 3. | KWEB dividend | 8. | CORZ dividend | 3. | SMCI dividend | |
| 4. | GLD dividend | 9. | INTC dividend | 4. | WDC dividend | |
| 5. | IBIT dividend | 10. | SPY dividend | 5. | IREN dividend | |
Want more examples? XYL Dividend | XYLG Dividend
