QYLD Dividend Type Payments
Although QYLD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X NASDAQ 100 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 Mon 4:16 PM ET):
| Global X NASDAQ 100 Covered Call ETF (QYLD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 15.61 |
15.62 |
15.64 |
-0.37 |
7.6M |
- |
7.6B |
QYLD Dividend-Like Income Using Covered Calls
With QYLD at 15.64, 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% |
0.47 |
0.1 |
| 5% |
0.78 |
0.2 |
| 10% |
1.56 |
0.4 |
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 QYLD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
15.66 |
0.50 |
117 |
0.4 |
0.04 (0.3%) |
| May 16 |
15.66 |
0.35 |
26 |
1.3 |
0.04 (0.3%) |
| 5% Yield On QYLD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
15.66 |
0.50 |
117 |
0.4 |
0.04 (0.3%) |
| May 16 |
15.66 |
0.35 |
26 |
1.3 |
0.04 (0.3%) |
| 10% Yield On QYLD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
15.66 |
0.35 |
26 |
1.3 |
0.04 (0.3%) |
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