UPRO Dividend Type Payments

Although UPRO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRAPRO S&P 500 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 ULTRAPRO S&P 500 (UPRO)
Bid Ask Last Change Volume P/E Market Cap
53.76 53.85 53.76 +0.52 3.5M - 14B

UPRO Dividend-Like Income Using Covered Calls

With UPRO at 53.76, 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% 1.61 0.4
5% 2.69 0.7
10% 5.38 1.5

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 UPRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 55.00 0.15 8 1.9 1.15 (2.1%)
Aug 31 56.50 0.15 15 1.0 2.65 (4.9%)
5% Yield On UPRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 55.00 0.15 8 1.9 1.15 (2.1%)
Aug 31 56.50 0.15 15 1.0 2.65 (4.9%)
10% Yield On UPRO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 55.00 0.15 8 1.9 1.15 (2.1%)
Aug 31 55.50 0.30 15 2.0 1.65 (3.1%)

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Want more examples? UPLD Dividend | UPS Dividend