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 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

PRINCIPAL US MEGA-CAP MULTI-FACTOR INDEX ETF (USMC)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
27.39	27.39	27.39	+0.01	4K	-	17B

USMC Dividend-Like Income Using Covered Calls

With USMC at 27.39, 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%	0.82	0.2
5%	1.37	0.4
10%	2.74	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 USMC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 21	28.00	0.25	66	0.4	0.61 (2.2%)

5% Yield On USMC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 21	28.00	0.25	66	0.4	0.61 (2.2%)

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Want more examples? USM Dividend | USMV Dividend