KBE Dividend Type Payments

Although KBE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Bank 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):

SPDR S&P Bank ETF (KBE)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
59.02	60.41	59.87	-0.09	1.7M	-	4.8B

KBE Dividend-Like Income Using Covered Calls

With KBE at 59.87, 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%	1.80	0.5
5%	2.99	0.8
10%	5.99	1.6

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 KBE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 20	61.00	2.10	215	1.0	0.59 (1.0%)
Mar 21	61.00	0.80	124	0.6	0.59 (1.0%)

5% Yield On KBE Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 20	61.00	2.10	215	1.0	0.59 (1.0%)

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Want more examples? KBA Dividend | KBH Dividend