DUG Dividend Type Payments
Although DUG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares UltraShort Energy to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:20 PM ET):
| ProShares UltraShort Energy (DUG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 34.68 | 34.70 | 34.68 | -0.79 | 143K | - | 0.0B |
DUG Dividend-Like Income Using Covered Calls
With DUG at 34.68, 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% | 1.04 | 0.3 |
| 5% | 1.73 | 0.5 |
| 10% | 3.47 | 1.0 |
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 DUG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 35.00 | 1.05 | 38 | 2.8 | 0.30 (0.9%) | |
| Sep 19 | 36.00 | 0.15 | 10 | 1.5 | 1.30 (3.7%) | |
| 5% Yield On DUG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 35.00 | 1.05 | 38 | 2.8 | 0.30 (0.9%) | |
| Sep 19 | 36.00 | 0.15 | 10 | 1.5 | 1.30 (3.7%) | |
| 10% Yield On DUG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 35.00 | 1.05 | 38 | 2.8 | 0.30 (0.9%) | |
| Sep 19 | 36.00 | 0.15 | 10 | 1.5 | 1.30 (3.7%) | |
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IBIT dividend | 1. | ATYR dividend | |
| 2. | PCG dividend | 7. | QQQ dividend | 2. | ADBE dividend | |
| 3. | IWM dividend | 8. | SLV dividend | 3. | PCG dividend | |
| 4. | SPY dividend | 9. | FXI dividend | 4. | ASTS dividend | |
| 5. | EEM dividend | 10. | TSLA dividend | 5. | BBBY dividend | |
Want more examples? DTH Dividend | DUK Dividend
