UST Dividend Type Payments


Although UST has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PROSHARES ULTRA 7-10-YEAR TREASURY 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):

Bid Ask Last Change Volume P/E Market Cap
54.01 54.28 54.13 -0.01 6K - 0.4B

UST Dividend-Like Income Using Covered Calls

With UST at 54.13, 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% 1.62 0.4
5% 2.71 0.7
10% 5.41 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 UST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 55.00 0.50 92 0.5 0.72 (1.3%)
Feb 15 55.00 0.95 183 0.5 0.72 (1.3%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.COTY dividend
2.SPY dividend 7.GLD dividend   2.LB dividend
3.SPX dividend 8.FB dividend   3.AKRX dividend
4.QQQ dividend 9.IWM dividend   4.UVXY dividend
5.XLF dividend 10.GDX dividend   5.GPS dividend

Want more examples? USSD Dividend | USTB Dividend