SMDV Dividend Type Payments
Although SMDV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Russell 2000 Dividend Growers ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| ProShares Russell 2000 Dividend Growers ETF (SMDV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 58.67 | 65.76 | 62.35 | +0.81 | 77K | - | 0.0B |
SMDV Dividend-Like Income Using Covered Calls
With SMDV at 62.35, here's a table showing how big the annual "dividend" (i.e. 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% | 1.87 | 0.5 |
| 5% | 3.12 | 0.9 |
| 10% | 6.24 | 1.7 |
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:
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | EEM dividend | 1. | COIN dividend | |
| 2. | QQQ dividend | 7. | KWEB dividend | 2. | DKNG dividend | |
| 3. | HYG dividend | 8. | TSLA dividend | 3. | FTNT dividend | |
| 4. | SPY dividend | 9. | SLV dividend | 4. | EXPE dividend | |
| 5. | FXI dividend | 10. | AMZN dividend | 5. | RKT dividend | |
Want more examples? SMDD Dividend | SMDY Dividend
