SKF Dividend Type Payments

Although SKF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRA-SHORT FINANCIAL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 2:00 PM ET):

PROSHARES ULTRA-SHORT FINANCIAL (SKF)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
20.69	20.73	20.70	-0.22	8K	-	0.3B

SKF Dividend-Like Income Using Covered Calls

With SKF at 20.70, 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%	0.62	0.2
5%	1.04	0.3
10%	2.07	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:

3% Yield On SKF Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 16	28.00	0.05	29	0.2	7.27 (35.1%)
Dec 21	28.00	0.12	64	0.2	7.27 (35.1%)

5% Yield On SKF Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 16	24.00	0.11	29	0.4	3.27 (15.8%)
Dec 21	26.00	0.21	64	0.3	5.27 (25.5%)

10% Yield On SKF Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 16	22.00	0.35	29	1.2	1.27 (6.1%)
Dec 21	23.00	0.49	64	0.8	2.27 (11.0%)

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Want more examples? SJW Dividend | SKIS Dividend