QQEW Dividend Type Payments
Although QQEW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on First Trust NASDAQ-100 Equal Weighted Index Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 123.63 | 128.78 | 126.63 | -1.16 | 91K | - | 2.2B |
QQEW Dividend-Like Income Using Covered Calls
With QQEW at 126.63, 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% | 3.80 | 1.0 |
| 5% | 6.33 | 1.7 |
| 10% | 12.66 | 3.5 |
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 QQEW Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 18 | 129.00 | 2.70 | 193 | 1.4 | 0.22 (0.2%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | XLF dividend | 1. | JSPR dividend | |
| 2. | SLV dividend | 7. | SPY dividend | 2. | SWTX dividend | |
| 3. | AAPL dividend | 8. | IWM dividend | 3. | QBTS dividend | |
| 4. | EEM dividend | 9. | TSLA dividend | 4. | IONQ dividend | |
| 5. | INTC dividend | 10. | TLT dividend | 5. | FUBO dividend | |
Want more examples? QPX Dividend | QQH Dividend
