USMC Dividend Type Payments

Although USMC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Principal U.S. Mega-Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Principal U.S. Mega-Cap ETF (USMC)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
51.39	53.26	52.36	-1.32	84K	-	0.0B

USMC Dividend-Like Income Using Covered Calls

With USMC at 52.36, 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%	1.57	0.4
5%	2.62	0.7
10%	5.24	1.4

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 USMC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	53.00	1.90	152	1.1	0.00 (0.0%)
Dec 19	53.00	2.00	243	0.7	0.00 (0.0%)

5% Yield On USMC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	53.00	1.90	152	1.1	0.00 (0.0%)
Jun 20	53.00	1.10	61	1.4	0.00 (0.0%)

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Want more examples? USM Dividend | USMV Dividend