XTN Dividend Type Payments

SPDR S&P Transportation ETF dividend

Although XTN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P Transportation ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

SPDR S&P Transportation ETF (XTN)
Bid Ask Last Change Volume P/E Market Cap
88.95 92.58 90.60 -1.00 32K - 0.5B

XTN Dividend-Like Income Using Covered Calls

With XTN at 90.60, 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% 2.72 0.7
5% 4.53 1.2
10% 9.06 2.5

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 XTN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 93.00 1.90 151 1.3 0.42 (0.5%)
Jul 18 93.00 3.30 243 1.4 0.42 (0.5%)
5% Yield On XTN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 93.00 1.90 151 1.3 0.42 (0.5%)
Jul 18 93.00 3.30 243 1.4 0.42 (0.5%)

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Want more examples? XTL Dividend | XXII Dividend