QLD Dividend Type Payments

PROSHARES ULTRA QQQ dividend

Although QLD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRA QQQ to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

PROSHARES ULTRA QQQ (QLD)
Bid Ask Last Change Volume P/E Market Cap
94.44 94.57 94.46 +0.05 1.1M - 18B

QLD Dividend-Like Income Using Covered Calls

With QLD at 94.46, 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% 2.83 0.8
5% 4.72 1.3
10% 9.45 2.6

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:

3% Yield On QLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 103.00 0.31 36 0.9 8.43 (8.9%)
Oct 19 105.00 0.62 64 1.0 10.43 (11.0%)
5% Yield On QLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 101.00 0.57 36 1.6 6.43 (6.8%)
Oct 19 103.00 1.16 64 1.8 8.43 (8.9%)
10% Yield On QLD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 99.00 1.10 36 3.1 4.43 (4.7%)
Oct 19 101.00 1.74 64 2.7 6.43 (6.8%)

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Want more examples? QJPN Dividend | QLS Dividend