UUP Dividend Type Payments

Invesco DB USD Index Bullish Fund ETF dividend

Although UUP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco DB USD Index Bullish Fund ETF 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):

Invesco DB USD Index Bullish Fund ETF (UUP)
Bid Ask Last Change Volume P/E Market Cap
27.66 27.70 27.66 -0.08 1.3M - 0.7B

UUP Dividend-Like Income Using Covered Calls

With UUP at 27.66, 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% 0.83 0.2
5% 1.38 0.4
10% 2.77 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 UUP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 18 28.00 0.35 71 0.5 0.30 (1.1%)
Sep 19 28.00 0.55 134 0.4 0.30 (1.1%)
5% Yield On UUP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 18 28.00 0.35 71 0.5 0.30 (1.1%)
Sep 19 28.00 0.55 134 0.4 0.30 (1.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For May 16 Expiration     Top 5 High Yield
1.NVDA dividend 6.SLV dividend   1.ALT dividend
2.SPY dividend 7.TSLA dividend   2.VALE dividend
3.TLT dividend 8.FXI dividend   3.AUPH dividend
4.QQQ dividend 9.GLD dividend   4.HE dividend
5.IWM dividend 10.INTC dividend   5.NMAX dividend

Want more examples? UTZ Dividend | UUUU Dividend