DBC Dividend Type Payments
Although DBC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Invesco DB Commodity Index Tracking Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:35 PM ET):
| Invesco DB Commodity Index Tracking Fund (DBC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 22.92 | 22.93 | 22.93 | -0.12 | 213K | - | 2.9B |
DBC Dividend-Like Income Using Covered Calls
With DBC at 22.93, 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% | 0.69 | 0.2 |
| 5% | 1.15 | 0.3 |
| 10% | 2.29 | 0.6 |
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 DBC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 23.00 | 0.50 | 46 | 1.1 | 0.07 (0.3%) | |
| Nov 21 | 23.00 | 0.20 | 18 | 1.1 | 0.07 (0.3%) | |
| 5% Yield On DBC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 23.00 | 0.50 | 46 | 1.1 | 0.07 (0.3%) | |
| Nov 21 | 23.00 | 0.20 | 18 | 1.1 | 0.07 (0.3%) | |
| 10% Yield On DBC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 23.00 | 0.50 | 46 | 1.1 | 0.07 (0.3%) | |
| Nov 21 | 23.00 | 0.20 | 18 | 1.1 | 0.07 (0.3%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | INTC dividend | 1. | UPST dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | LYFT dividend | |
| 3. | NVDA dividend | 8. | ASST dividend | 3. | CAVA dividend | |
| 4. | SLV dividend | 9. | HYG dividend | 4. | TTD dividend | |
| 5. | GLD dividend | 10. | EEM dividend | 5. | PINS dividend | |
Want more examples? DBB Dividend | DBD Dividend
