DXD Dividend Type Payments

Proshares Ultra-Short Dow 30 dividend

Although DXD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Proshares Ultra-Short Dow 30 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):

Proshares Ultra-Short Dow 30 (DXD)
Bid Ask Last Change Volume P/E Market Cap
34.93 35.07 35.11 +1.41 1.9M - 0.0B

DXD Dividend-Like Income Using Covered Calls

With DXD at 35.11, 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% 1.05 0.3
5% 1.76 0.5
10% 3.51 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 DXD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 39.00 0.10 5 2.0 3.93 (11.2%)
Jan 18 45.00 0.25 33 0.8 9.93 (28.3%)
5% Yield On DXD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 39.00 0.10 5 2.0 3.93 (11.2%)
Jan 18 45.00 0.25 33 0.8 9.93 (28.3%)
10% Yield On DXD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 39.00 0.10 5 2.0 3.93 (11.2%)
Jan 18 41.00 0.50 33 1.5 5.93 (16.9%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? DXCM Dividend | DXJ Dividend