In case you haven’t noticed, the market has moved off the nice trend line it was on the 2nd half of 2009 into what appears to be a sideways mode.
Sideways Market — with a slightly declining trend…
Mainstream
The basics: what you can do in different account types, general strategies, suggestions, and things to avoid.
DIA dividend capture
The SPDR Dow Diamond ETF is an interesting candidate for a dividend capture strategy–if you can do it in a tax sheltered account such as a traditional or ROTH IRA. On an annual basis is it yielding around 2% and it distributes dividends monthly. Its dividend payouts are not consistent month to month, they vary from an average of $0.11 in January over the last 5 years, to and average of $0.33 in October. The chart below gives details. February’s average payout is around $0.25, which is pretty close to a .25% return since the DIA is around $100 per share right now.
DIA is unusual for a index ETF offering monthly dividends, in that its ex-dividend dates are the day before the option expiration date for that month. For example DIA goes ex-dividend on 19-February and the last day of trading on the options is also the 19th with expiration on Saturday the 20th.
This arrangement sets up a straightforward dividend capture scheme using covered calls. You buy DIA and sell DIA ITM calls, with an extrinsic value (time value) of approximately the dividend value (historically about 0.25 for February). At closing today, with DIA at $101.5, this would suggest the 98 Feb call, which at $3.75 would give the target extrinsic value. The break-even point on this position will probably be 101.5-3.75 =97.75. I say probably, because there is uncertainty on whether you collect the 0.25 per share dividend or not.
Bear or a scare?
It didn’t take long for the self-conscious euphoria of early January to turn into panic-tinged nervousness in late January. I don’t blame the market, after the brutal beating of early 2009, people have a right to be fearful. I continue to be optimistic. At the base level, I think the markets are driven by the economy, and there is little doubt that things are improving. Of …
2023 Ex-Dividend & Paydate / Distribution information for ETFs
I have collected dividend, ex-dividend, paydate/ distribution information for 2023 on the following ETFs. Alerian AMLP Invesco Quarterly Group I: EWEM EWMC EWRE EWSC OEW RCD RFG RFV RGI RHS RPG RPV RZG RZV RSP RTM RYE RYF RYH RYT RYU XLG iShares iShares: AGG CMF CSJ HYG IEF IEI IGOV ISHG LQD PFF SHV SHY TIP TLH TLT iShares: AGZ CFT CIU EMB GBF …
Dividend History Report
For iShare and SPDR ETFs you can use this page to obtain dividend history data and charts. DividendInvestor provides a nice dividend report on their free website. It includes yields and timely updates on dividends. If you click on the “Dividends Paid Since” button you will get multiple years of dividend history.
