SRS Dividend Type Payments

PROSHARES ULTRA-SHORT REAL ESTA dividend

Although SRS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRA-SHORT REAL ESTA 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-SHORT REAL ESTA (SRS)
Bid Ask Last Change Volume P/E Market Cap
29.12 29.82 29.45 -0.48 27K - 0.2B

SRS Dividend-Like Income Using Covered Calls

With SRS at 29.45, 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% 0.88 0.2
5% 1.47 0.4
10% 2.95 0.8

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 SRS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 35.00 0.09 29 0.3 5.18 (17.6%)
Dec 21 40.00 0.17 64 0.3 10.18 (34.6%)
5% Yield On SRS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 34.00 0.21 29 0.7 4.18 (14.2%)
Dec 21 37.00 0.27 64 0.4 7.18 (24.4%)
10% Yield On SRS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 33.00 0.27 29 0.9 3.18 (10.8%)
Dec 21 33.00 0.56 64 0.9 3.18 (10.8%)

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Want more examples? SRRA Dividend | SRT Dividend