EFU Dividend Type Payments

PROSHARES ULTRA-SHORT MSCI EAFE dividend

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 Wed 11:50 AM ET):

PROSHARES ULTRA-SHORT MSCI EAFE (EFU)
Bid Ask Last Change Volume P/E Market Cap
25.69 25.80 25.64 +0.07 1K - 0.0B

EFU Dividend-Like Income Using Covered Calls

With EFU at 25.64, 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% 0.77 0.2
5% 1.28 0.4
10% 2.56 0.7

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 EFU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 26.00 0.20 3 6.7 0.20 (0.8%)
Nov 16 27.00 0.50 31 1.6 1.20 (4.7%)
5% Yield On EFU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 26.00 0.20 3 6.7 0.20 (0.8%)
Nov 16 27.00 0.50 31 1.6 1.20 (4.7%)
10% Yield On EFU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 26.00 0.20 3 6.7 0.20 (0.8%)
Nov 16 27.00 0.50 31 1.6 1.20 (4.7%)

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Want more examples? EFSC Dividend | EFV Dividend