SJB Dividend Type Payments

ProShares Short High Yield dividend

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

ProShares Short High Yield (SJB)
Bid Ask Last Change Volume P/E Market Cap
23.11 23.44 23.16 -0.04 36K - 0.0B

SJB Dividend-Like Income Using Covered Calls

With SJB at 23.16, 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% 1.16 0.3
10% 2.32 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 Dec 21 Expiration     Top 5 High Yield
1.DUST dividend 6.NSSC dividend   1. dividend
2.NOVT dividend 7.MOD dividend   2. dividend
3.MMS dividend 8.VV dividend   3. dividend
4.VSI dividend 9.EC dividend   4. dividend
5.DXJS dividend 10.NTWK dividend   5. dividend

Want more examples? SIZE Dividend | SJI Dividend