XYLD cuts monthly dividend 24% to $0.311 per share

XYLD (Global X S&P 500 Covered Call ETF) has announced a monthly dividend cut. The new payment of $0.3110 per share represents a 23.96% decrease from the previous $0.4090. The ex-dividend date for this payment is August 24, 2026.

The numbers

This cut follows a series of monthly payments that have fluctuated recently: $0.391 (March 23), $0.352 (April 20), $0.401 (May 18), $0.34 (June 22), and $0.409 (July 20). At the current price of $41.29, the trailing twelve-month (TTM) yield stands at 10.48%, with TTM dividend per share of $4.3290. Despite the cut, the ETF has a 5-year dividend CAGR of 3.0%, but it has not recorded consecutive years of increases (0 years).

What it means for income investors

For an investor holding 100 shares, the new monthly payment translates to $31.10, or an annualized rate of $373.20 based on the current payment. This is a reduction from the previous annualized rate of $490.80. The cut reflects the variable nature of covered call strategies, which depend on market conditions. Investors should review the dividend history to understand the payment pattern.

Reporting based on: DividendSmart market data. Figures verified against market data where available.