UNG Dividend Type Payments
Although UNG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on United States Natural Gas Fund LP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| United States Natural Gas Fund LP (UNG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 15.95 | 15.96 | 15.94 | -0.74 | 6.1M | - | 0.7B |
UNG Dividend-Like Income Using Covered Calls
With UNG at 15.94, 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% | 0.48 | 0.1 |
| 5% | 0.80 | 0.2 |
| 10% | 1.59 | 0.4 |
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 UNG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 1 | 16.00 | 0.85 | 29 | 2.9 | 0.04 (0.3%) | |
| Nov 8 | 16.00 | 0.96 | 36 | 2.7 | 0.04 (0.3%) | |
| 5% Yield On UNG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 1 | 16.00 | 0.85 | 29 | 2.9 | 0.04 (0.3%) | |
| Nov 8 | 16.00 | 0.96 | 36 | 2.7 | 0.04 (0.3%) | |
| 10% Yield On UNG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 1 | 16.00 | 0.85 | 29 | 2.9 | 0.04 (0.3%) | |
| Nov 8 | 16.00 | 0.96 | 36 | 2.7 | 0.04 (0.3%) | |
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| Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | CLOV dividend | |
| 2. | IWM dividend | 7. | SLV dividend | 2. | AEHR dividend | |
| 3. | SPY dividend | 8. | SMCI dividend | 3. | APLD dividend | |
| 4. | FXI dividend | 9. | KWEB dividend | 4. | CPRI dividend | |
| 5. | QQQ dividend | 10. | HYG dividend | 5. | WOLF dividend | |
Want more examples? UNFI Dividend | UNH Dividend
