EFU Dividend Type Payments
Although EFU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRA-SHORT MSCI EAFE 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 MSCI EAFE (EFU) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 24.09 | 24.30 | 23.00 | -0.40 | 0K | - | 0.0B |
EFU Dividend-Like Income Using Covered Calls
With EFU at 23.00, 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% | 0.69 | 0.2 |
| 5% | 1.15 | 0.3 |
| 10% | 2.30 | 0.6 |
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:
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| Top 10 Open Interest For Aug 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | BAC dividend | 1. | SSTK dividend | |
| 2. | EEM dividend | 7. | AABA dividend | 2. | UVXY dividend | |
| 3. | QQQ dividend | 8. | FXI dividend | 3. | VIPS dividend | |
| 4. | SPX dividend | 9. | GLD dividend | 4. | HUYA dividend | |
| 5. | XLF dividend | 10. | FB dividend | 5. | SWCH dividend | |
Want more examples? EFSC Dividend | EFV Dividend
