UYM Dividend Type Payments

Proshares Ultra Basic Material dividend

Although UYM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Proshares Ultra Basic Material to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Proshares Ultra Basic Material (UYM)
Bid Ask Last Change Volume P/E Market Cap
49.00 50.44 49.53 -0.40 4K - 0.0B

UYM Dividend-Like Income Using Covered Calls

With UYM at 49.53, 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% 1.49 0.4
5% 2.48 0.7
10% 4.95 1.4

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 UYM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 57.00 0.05 11 0.5 6.56 (13.2%)
Jan 18 59.00 0.25 39 0.6 8.56 (17.3%)
5% Yield On UYM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 55.00 0.15 11 1.4 4.56 (9.2%)
Jan 18 58.00 0.35 39 0.9 7.56 (15.3%)
10% Yield On UYM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 55.00 0.15 11 1.4 4.56 (9.2%)
Jan 18 56.00 0.60 39 1.5 5.56 (11.2%)

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

 
Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DUST dividend 6.NSSC dividend   1. dividend
2.NOVT dividend 7.MOD dividend   2. dividend
3.MMS dividend 8.VV dividend   3. dividend
4.VSI dividend 9.EC dividend   4. dividend
5.DXJS dividend 10.NTWK dividend   5. dividend

Want more examples? UYG Dividend | V Dividend