USMC Dividend Type Payments
Although USMC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Principal US Mega-CAP Multi-Factor Index ETF, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Principal US Mega-CAP Multi-Factor Index ETF, Inc (USMC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 28.28 | 28.28 | 28.28 | +0.27 | 7K | - | 1.6B |
USMC Dividend-Like Income Using Covered Calls
With USMC at 28.28, 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% | 0.85 | 0.2 |
| 5% | 1.41 | 0.4 |
| 10% | 2.83 | 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:
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| Top 10 Open Interest For Apr 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | FXI dividend | 1. | NKE dividend | |
| 2. | EEM dividend | 7. | BMY dividend | 2. | MO dividend | |
| 3. | SPX dividend | 8. | AAPL dividend | 3. | AMD dividend | |
| 4. | QQQ dividend | 9. | IWM dividend | 4. | CGC dividend | |
| 5. | USO dividend | 10. | NIO dividend | 5. | BCRX dividend | |
Want more examples? USM Dividend | USMV Dividend
