DJP Dividend Type Payments

iPath Bloomberg Commodity Index Total Return ETN dividend

Although DJP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iPath Bloomberg Commodity Index Total Return ETN 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):

iPath Bloomberg Commodity Index Total Return ETN (DJP)
Bid Ask Last Change Volume P/E Market Cap
31.70 32.75 31.77 +0.02 78K - 1.3B

DJP Dividend-Like Income Using Covered Calls

With DJP at 31.77, 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% 0.95 0.3
5% 1.59 0.4
10% 3.18 0.9

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 DJP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 33.00 0.70 112 0.6 0.25 (0.8%)
Jul 18 33.00 1.10 204 0.5 0.25 (0.8%)
5% Yield On DJP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 17 33.00 0.70 112 0.6 0.25 (0.8%)
Jul 18 33.00 1.10 204 0.5 0.25 (0.8%)

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