UNL Dividend Type Payments
Although UNL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on United States 12 Month Natural Gas Fund to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| United States 12 Month Natural Gas Fund (UNL) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 8.92 |
9.69 |
9.57 |
+0.14 |
44K |
- |
0.0B |
UNL Dividend-Like Income Using Covered Calls
With UNL at 9.57, 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% |
0.29 |
0.1 |
| 5% |
0.48 |
0.1 |
| 10% |
0.96 |
0.3 |
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 UNL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
10.00 |
0.40 |
94 |
0.4 |
0.31 (3.2%) |
| Dec 19 |
10.00 |
0.75 |
185 |
0.4 |
0.31 (3.2%) |
| 5% Yield On UNL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
10.00 |
0.40 |
94 |
0.4 |
0.31 (3.2%) |
| Dec 19 |
10.00 |
0.75 |
185 |
0.4 |
0.31 (3.2%) |
| 10% Yield On UNL Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
10.00 |
0.40 |
94 |
0.4 |
0.31 (3.2%) |
| Dec 19 |
10.00 |
0.75 |
185 |
0.4 |
0.31 (3.2%) |
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