UST Dividend Type Payments

ProShares Ultra 7-10 Year Treasury dividend

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 Tue 3:35 PM ET):

ProShares Ultra 7-10 Year Treasury (UST)
Bid Ask Last Change Volume P/E Market Cap
44.40 44.44 44.38 +0.17 1K - 0.0B

UST Dividend-Like Income Using Covered Calls

With UST at 44.38, here's a table showing how big the annual "dividend" (i.e. 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% 1.33 0.4
5% 2.22 0.6
10% 4.44 1.2

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
May 15 45.00 1.00 151 0.7 0.56 (1.3%)
Jan 16 45.00 0.15 32 0.5 0.56 (1.3%)
5% Yield On UST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 45.00 1.00 151 0.7 0.56 (1.3%)
Feb 20 45.00 0.50 67 0.7 0.56 (1.3%)

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Want more examples? USSG Dividend | UTES Dividend