TMF Dividend Type Payments

Although TMF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DIREXION DAILY 20+ YEAR TREASURY BUL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:20 PM ET):

DIREXION DAILY 20+ YEAR TREASURY BUL (TMF)
Bid Ask Last Change Volume P/E Market Cap
16.21 16.22 16.22 +0.05 186K - 1.0B

TMF Dividend-Like Income Using Covered Calls

With TMF at 16.22, 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% 0.49 0.1
5% 0.81 0.2
10% 1.62 0.4

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 TMF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 18.00 0.05 32 0.2 1.78 (11.0%)
Dec 21 19.00 0.10 67 0.1 2.78 (17.1%)
5% Yield On TMF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 17.00 0.25 32 0.8 0.78 (4.8%)
Dec 21 18.00 0.20 67 0.3 1.78 (11.0%)
10% Yield On TMF Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 17.00 0.25 32 0.8 0.78 (4.8%)
Dec 21 17.00 0.45 67 0.7 0.78 (4.8%)

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Want more examples? TM Dividend | TMHC Dividend