SLYV Dividend Type Payments
Although SLYV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P 600 Small Cap Value ETF (based on S&P SmallCap Value Index--sym to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:55 PM ET):
| SPDR S&P 600 Small Cap Value ETF (based on S&P SmallCap Value Index--sym (SLYV) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 73.43 |
73.45 |
73.45 |
0.00 |
124K |
- |
0.4B |
SLYV Dividend-Like Income Using Covered Calls
With SLYV at 73.45, 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% |
2.20 |
0.6 |
| 5% |
3.67 |
1.0 |
| 10% |
7.35 |
2.0 |
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 SLYV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
74.00 |
2.80 |
145 |
1.9 |
0.55 (0.7%) |
| Dec 19 |
74.00 |
3.70 |
236 |
1.6 |
0.55 (0.7%) |
| 5% Yield On SLYV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
74.00 |
2.80 |
145 |
1.9 |
0.55 (0.7%) |
| Dec 19 |
74.00 |
3.70 |
236 |
1.6 |
0.55 (0.7%) |
| 10% Yield On SLYV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
74.00 |
1.20 |
54 |
2.2 |
0.55 (0.7%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
