TMV Dividend Type Payments

Although TMV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DIREXION DAILY 20+ YEAR TREASURY BEA 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):

DIREXION DAILY 20+ YEAR TREASURY BEA (TMV)
Bid Ask Last Change Volume P/E Market Cap
19.17 19.20 19.19 -0.07 387K - 3.2B

TMV Dividend-Like Income Using Covered Calls

With TMV at 19.19, 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% 0.58 0.2
5% 0.96 0.3
10% 1.92 0.5

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 TMV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 21.00 0.10 36 0.3 1.80 (9.4%)
Oct 19 21.00 0.25 64 0.4 1.80 (9.4%)
5% Yield On TMV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 21.00 0.10 36 0.3 1.80 (9.4%)
Oct 19 21.00 0.25 64 0.4 1.80 (9.4%)
10% Yield On TMV Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 20.00 0.30 36 0.8 0.80 (4.2%)
Oct 19 20.00 0.50 64 0.8 0.80 (4.2%)

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Want more examples? TMUS Dividend | TNA Dividend