SPHY Dividend Type Payments
Although SPHY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Portfolio High Yield Bond ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 9:55 AM ET):
| SPDR Portfolio High Yield Bond ETF (SPHY) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 22.89 | 22.90 | 22.90 | -0.09 | 337K | - | 0.0B |
SPHY Dividend-Like Income Using Covered Calls
With SPHY at 22.90, 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% | 0.69 | 0.2 |
| 5% | 1.15 | 0.3 |
| 10% | 2.29 | 0.6 |
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 SPHY Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 23.00 | 0.05 | 26 | 0.2 | 0.10 (0.4%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | APLD dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | BHVN dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | STLA dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | VRT dividend | |
| 5. | QQQ dividend | 10. | KWEB dividend | 5. | ASTS dividend | |
Want more examples? SPHQ Dividend | SPIB Dividend
