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 Mon 1:00 PM ET):
| ProShares Short 20+ Year Treasury (TBF) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 24.18 | 24.20 | 24.19 | -0.20 | 69K | - | 0.2B |
TBF Dividend-Like Income Using Covered Calls
With TBF at 24.19, 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% | 0.73 | 0.2 |
| 5% | 1.21 | 0.3 |
| 10% | 2.42 | 0.7 |
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 | |
| Aug 15 | 25.00 | 0.20 | 47 | 0.4 | 0.80 (3.3%) | |
| Sep 19 | 25.00 | 0.35 | 82 | 0.4 | 0.80 (3.3%) | |
| 5% Yield On TBF Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 25.00 | 0.20 | 47 | 0.4 | 0.80 (3.3%) | |
| Sep 19 | 25.00 | 0.35 | 82 | 0.4 | 0.80 (3.3%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TLT dividend | 1. | COGT dividend | |
| 2. | SLV dividend | 7. | TSLA dividend | 2. | ENPH dividend | |
| 3. | SPY dividend | 8. | AAPL dividend | 3. | ENVX dividend | |
| 4. | GLD dividend | 9. | FXI dividend | 4. | EOSE dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | OKLO dividend | |
Want more examples? TBBK Dividend | TBI Dividend
