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 |
| 105.00 |
105.28 |
105.12 |
+0.78 |
2.1M |
- |
1.5B |
SPYG Dividend-Like Income Using Covered Calls
With SPYG at 105.12, 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% |
3.15 |
0.9 |
| 5% |
5.26 |
1.4 |
| 10% |
10.51 |
2.9 |
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 19 |
105.00 |
3.40 |
58 |
5.4 |
0.00 (0.0%) |
| Nov 21 |
105.00 |
2.25 |
30 |
6.6 |
0.00 (0.0%) |
| 5% Yield On SPYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
105.00 |
3.40 |
58 |
5.4 |
0.00 (0.0%) |
| Nov 21 |
105.00 |
2.25 |
30 |
6.6 |
0.00 (0.0%) |
| 10% Yield On SPYG Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
105.00 |
3.40 |
58 |
5.4 |
0.00 (0.0%) |
| Nov 21 |
105.00 |
2.25 |
30 |
6.6 |
0.00 (0.0%) |
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