Weekly Dividend Income From Space
Space is becoming a very trendy industry for investors.
It makes sense with the successful Artemis II mission as well as the box office hit, Project Hail Mary.
Unfortunately, space companies aren’t great for dividend investors.
It’s because none of them pay dividends!
Two of the largest space-focused ETFs, Procure Space ETF (ticker: UFO) and ARK Space & Defense Innovation ETF (ticker: ARKX), don’t make any dividend payments.
However, just because space stocks don’t pay a dividend doesn’t mean we can’t generate income from them.
And one exchange-traded fund (ETF) provider is filling a massive need.
Tuttle Capital Space Industry Income Blast ETF (ticker: SPCI) is a new income ETF focused on the space industry.
It only started trading in March 2026.
And it’s only a matter of time until SPCI really takes off.
The ETF pays a dividend every single week.
It’s not unique… plenty of other income ETFs pay weekly as well.
But SPCI is paying $0.20 every week, and since it’s new, many financial sites aren’t calculating its dividend yield correctly.
A few sites, like SeekingAlpha.com, StockAnalysis.com, and ETFDB.com, have the dividend yield at around 3%.
But they’re basing it off of historical dividend payments, and SPCI has only been paying dividends for a few weeks.
If SPCI can maintain $0.20 payments every week, the ETF would pay over $10 per year in dividends.
SPCI’s stock price is trading around $31, so its dividend yield is actually over 30%!
How does SPCI do it?
Like other weekly income ETFs, SPCI uses options to generate income to pay dividends.
Here’s how it works.
SPCI buys and sells put options at different strike prices, a strategy called a put spread.
Fidelity has an excellent guide on how it works, but here’s a quick explanation.
Put options require the seller to buy a stock (underlying) at a specific price (strike price) on a certain date (expiration date).
When you sell an option you get a premium, which is money given to you by the buyer to take on the risk of the underlying.
The higher the strike price on a put option, the greater the premium.
SPCI sells a put at a higher strike price, and then buys another put at a lower strike price.
It collects a higher premium from selling than it pays for buying.
The difference in premium is the income SPCI generates from the options strategy, which it then pays out in dividends.
One advantage to put spreads over other options strategies is the purchased put option provides some downside protection.
Granted, it does cut into our dividend income.
But I’m not going to complain about a dividend yield over 30%!
Michael Jennings, Editor
Dividend Stocks Research
Category: Dividend Yield
