TBF Dividend Type Payments
Although TBF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Short 20+ 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 2:35 PM ET):
| ProShares Short 20+ Year Treasury (TBF) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 23.25 | 23.26 | 23.25 | +0.06 | 48K | - | 0.2B |
TBF Dividend-Like Income Using Covered Calls
With TBF at 23.25, 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% | 0.70 | 0.2 |
| 5% | 1.16 | 0.3 |
| 10% | 2.33 | 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 TBF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 20 | 24.00 | 0.45 | 155 | 0.3 | 0.74 (3.2%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | GLD dividend | 1. | INBX dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | BHVN dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | CRML dividend | |
| 4. | SLV dividend | 9. | INTC dividend | 4. | FLR dividend | |
| 5. | HYG dividend | 10. | QQQ dividend | 5. | CIFR dividend | |
Want more examples? TBBK Dividend | TBI Dividend
