SPYV Dividend Type Payments
Although SPYV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR Series Trust SPDR Portfolio S&P 500 Value 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 Value ETF (SPYV) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 47.09 |
48.33 |
47.54 |
+0.10 |
2.5M |
- |
0.3B |
SPYV Dividend-Like Income Using Covered Calls
With SPYV at 47.54, 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% |
1.43 |
0.4 |
| 5% |
2.38 |
0.7 |
| 10% |
4.75 |
1.3 |
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 SPYV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
49.00 |
0.35 |
30 |
1.2 |
0.67 (1.4%) |
| Sep 19 |
49.00 |
1.55 |
156 |
1.0 |
0.67 (1.4%) |
| 5% Yield On SPYV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
49.00 |
0.35 |
30 |
1.2 |
0.67 (1.4%) |
| Sep 19 |
49.00 |
1.55 |
156 |
1.0 |
0.67 (1.4%) |
| 10% Yield On SPYV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
49.00 |
0.85 |
65 |
1.3 |
0.67 (1.4%) |
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