SPYG Dividend Type Payments
Although SPYG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Series Trust SPDR Portfolio S&P 500 Growth ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| SPDR Series Trust SPDR Portfolio S&P 500 Growth ETF (SPYG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 76.42 |
77.13 |
76.58 |
+0.03 |
2.4M |
- |
1.1B |
SPYG Dividend-Like Income Using Covered Calls
With SPYG at 76.58, 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% |
2.30 |
0.6 |
| 5% |
3.83 |
1.0 |
| 10% |
7.66 |
2.1 |
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 SPYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
77.00 |
1.95 |
30 |
6.1 |
0.00 (0.0%) |
| Sep 19 |
77.00 |
5.20 |
156 |
3.3 |
0.00 (0.0%) |
| 5% Yield On SPYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
77.00 |
1.95 |
30 |
6.1 |
0.00 (0.0%) |
| Sep 19 |
77.00 |
5.20 |
156 |
3.3 |
0.00 (0.0%) |
| 10% Yield On SPYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
77.00 |
1.95 |
30 |
6.1 |
0.00 (0.0%) |
| Sep 19 |
77.00 |
5.20 |
156 |
3.3 |
0.00 (0.0%) |
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