DFEN Dividend Type Payments

Although DFEN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Direxion Daily Aerospace & Defense Bull 3X 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):

Direxion Daily Aerospace & Defense Bull 3X (DFEN)
Bid Ask Last Change Volume P/E Market Cap
53.35 55.08 55.02 +0.10 54K - 0.0B

DFEN Dividend-Like Income Using Covered Calls

With DFEN at 55.02, here's a table showing how big the annual "dividend" (ie. 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% 1.65 0.5
5% 2.75 0.8
10% 5.50 1.5

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 DFEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 56.00 1.25 26 4.8 0.92 (1.7%)
Oct 18 65.00 0.55 89 0.6 9.92 (18.0%)
5% Yield On DFEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 56.00 1.25 26 4.8 0.92 (1.7%)
Oct 18 64.00 0.75 89 0.8 8.92 (16.2%)
10% Yield On DFEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 56.00 1.25 26 4.8 0.92 (1.7%)
Oct 18 61.00 1.55 89 1.7 5.92 (10.8%)

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Top 10 Open Interest For Aug 16 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.FXI dividend 7.NIO dividend   2.TWTR dividend
3.EEM dividend 8.BAC dividend   3.S dividend
4.SPX dividend 9.IWM dividend   4.ITCI dividend
5.GDX dividend 10.GLD dividend   5.TSLA dividend

Want more examples? DFE Dividend | DFIN Dividend