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 Fri 4:16 PM ET):
| SPDR Series Trust SPDR Portfolio S&P 500 Growth ETF (SPYG) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 86.59 |
87.50 |
87.36 |
+0.78 |
758K |
- |
1.2B |
SPYG Dividend-Like Income Using Covered Calls
With SPYG at 87.36, 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% |
2.62 |
0.7 |
| 5% |
4.37 |
1.2 |
| 10% |
8.74 |
2.4 |
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 SPYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
88.00 |
0.85 |
22 |
3.9 |
0.50 (0.6%) |
| Jan 17 |
88.00 |
1.00 |
50 |
2.0 |
0.50 (0.6%) |
| 5% Yield On SPYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
88.00 |
0.85 |
22 |
3.9 |
0.50 (0.6%) |
| Jan 17 |
88.00 |
1.00 |
50 |
2.0 |
0.50 (0.6%) |
| 10% Yield On SPYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
88.00 |
0.85 |
22 |
3.9 |
0.50 (0.6%) |
| Mar 21 |
88.00 |
3.00 |
113 |
2.7 |
0.50 (0.6%) |
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