MZZ Dividend Type Payments

PROSHARES ULTRA-SHORT MID-CAP 400 dividend

Although MZZ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRA-SHORT MID-CAP 400 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:30 PM ET):

PROSHARES ULTRA-SHORT MID-CAP 400 (MZZ)
Bid Ask Last Change Volume P/E Market Cap
17.95 18.00 17.97 -0.47 10K - 0.0B

MZZ Dividend-Like Income Using Covered Calls

With MZZ at 17.97, 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% 0.54 0.1
5% 0.90 0.2
10% 1.80 0.5

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 MZZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 18.00 0.20 4 5.0 0.00 (0.0%)
Nov 16 22.00 0.05 32 0.2 4.00 (22.3%)
5% Yield On MZZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 18.00 0.20 4 5.0 0.00 (0.0%)
Nov 16 21.00 0.10 32 0.3 3.00 (16.7%)
10% Yield On MZZ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 18.00 0.20 4 5.0 0.00 (0.0%)
Nov 16 19.00 0.35 32 1.1 1.00 (5.6%)

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