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 4:16 PM ET):

Proshares Ultra-Short MSCI Eafe (EFU)
Bid Ask Last Change Volume P/E Market Cap
25.01 25.38 25.31 -0.08 1K - 0.0B

EFU Dividend-Like Income Using Covered Calls

With EFU at 25.31, 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% 0.76 0.2
5% 1.27 0.3
10% 2.53 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
Mar 15 28.00 0.05 24 0.2 2.62 (10.4%)
Apr 18 28.00 0.30 58 0.5 2.62 (10.4%)
5% Yield On EFU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 27.00 0.10 24 0.4 1.62 (6.4%)
Apr 18 28.00 0.30 58 0.5 2.62 (10.4%)
10% Yield On EFU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 26.00 0.25 24 1.0 0.62 (2.4%)
Apr 18 26.00 0.65 58 1.1 0.62 (2.4%)

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Want more examples? EFSC Dividend | EFV Dividend