UST Dividend Type Payments

ProShares Ultra 7-10 Year Treasury dividend

Although UST has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ProShares Ultra 7-10 Year Treasury to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:10 PM ET):

ProShares Ultra 7-10 Year Treasury (UST)
Bid Ask Last Change Volume P/E Market Cap
43.62 43.66 43.64 +0.31 3K - 0.0B

UST Dividend-Like Income Using Covered Calls

With UST at 43.64, 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% 1.31 0.4
5% 2.18 0.6
10% 4.36 1.2

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 UST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 44.00 0.50 38 1.3 0.34 (0.8%)
Nov 21 44.00 0.95 101 0.9 0.34 (0.8%)
5% Yield On UST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 44.00 0.50 38 1.3 0.34 (0.8%)
Nov 21 44.00 0.95 101 0.9 0.34 (0.8%)
10% Yield On UST Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 44.00 0.50 38 1.3 0.34 (0.8%)

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Want more examples? USSG Dividend | UTES Dividend