USCI Dividend Type Payments
Although USCI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on United States Commodity Index Fund ETV 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 Commodity Index Fund ETV (USCI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 66.95 | 75.04 | 71.50 | +0.22 | 7K | 8.1 | 0.0B |
USCI Dividend-Like Income Using Covered Calls
With USCI at 71.50, 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% | 2.15 | 0.6 |
| 5% | 3.58 | 1.0 |
| 10% | 7.15 | 2.0 |
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 USCI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 75.00 | 1.60 | 148 | 1.1 | 0.00 (0.0%) | |
| Jul 18 | 75.00 | 0.50 | 57 | 0.8 | 0.00 (0.0%) | |
| 5% Yield On USCI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 75.00 | 1.60 | 148 | 1.1 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | QBTS dividend | |
| 2. | SPY dividend | 7. | EEM dividend | 2. | APLD dividend | |
| 3. | SLV dividend | 8. | FXI dividend | 3. | QUBT dividend | |
| 4. | QQQ dividend | 9. | TSLA dividend | 4. | CAPR dividend | |
| 5. | GLD dividend | 10. | TLT dividend | 5. | RDW dividend | |
Want more examples? USB Dividend | USD Dividend
