UGE Dividend Type Payments
Although UGE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Ultra Consumer Staples to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| ProShares Ultra Consumer Staples (UGE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 18.23 | 20.90 | 19.47 | -0.37 | 5K | - | 0.0B |
UGE Dividend-Like Income Using Covered Calls
With UGE at 19.47, 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% | 0.58 | 0.2 |
| 5% | 0.97 | 0.3 |
| 10% | 1.95 | 0.5 |
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:
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| Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | SMR dividend | |
| 2. | IWM dividend | 7. | SLV dividend | 2. | APLD dividend | |
| 3. | SPY dividend | 8. | SMCI dividend | 3. | UPST dividend | |
| 4. | FXI dividend | 9. | KWEB dividend | 4. | FUTU dividend | |
| 5. | QQQ dividend | 10. | HYG dividend | 5. | BYND dividend | |
Want more examples? UGA Dividend | UGI Dividend
