SQQQ Dividend Type Payments

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

ProShares UltraPro Short QQQ (SQQQ)
Bid Ask Last Change Volume P/E Market Cap
32.45 32.47 32.22 +0.46 9.5M 47 1.0B

SQQQ Dividend-Like Income Using Covered Calls

With SQQQ at 32.22, 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% 0.97 0.3
5% 1.61 0.4
10% 3.22 0.9

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 SQQQ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 33.00 0.15 3 5.0 0.53 (1.6%)
Aug 16 48.00 0.10 31 0.3 15.53 (48.2%)
5% Yield On SQQQ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 33.00 0.15 3 5.0 0.53 (1.6%)
Aug 16 45.00 0.15 31 0.5 12.53 (38.9%)
10% Yield On SQQQ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 33.00 0.15 3 5.0 0.53 (1.6%)
Aug 16 41.00 0.30 31 1.0 8.53 (26.5%)

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Top 10 Open Interest For Jul 19 Expiration     Top 5 High Yield
1.SPY dividend 6.OIH dividend   1.NFLX dividend
2.SPX dividend 7.FXI dividend   2.AMRN dividend
3.EEM dividend 8.USO dividend   3.ROKU dividend
4.QQQ dividend 9.AAPL dividend   4.SKX dividend
5.IWM dividend 10.VXX dividend   5.BFR dividend

Want more examples? SQM Dividend | SR Dividend