SMDD Dividend Type Payments
Although SMDD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on UltraPro Short MidCap400 to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:20 AM ET):
| UltraPro Short MidCap400 (SMDD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 7.90 | 7.91 | 7.92 | +0.03 | 4K | - | 0.0B |
SMDD Dividend-Like Income Using Covered Calls
With SMDD at 7.92, 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% | 0.24 | 0.1 |
| 5% | 0.40 | 0.1 |
| 10% | 0.79 | 0.2 |
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:
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | IWM dividend | 1. | WULF dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | AMAT dividend | |
| 3. | TSLA dividend | 8. | EEM dividend | 3. | OSCR dividend | |
| 4. | SPY dividend | 9. | EWZ dividend | 4. | RUM dividend | |
| 5. | SLV dividend | 10. | SMCI dividend | 5. | TEM dividend | |
Want more examples? SMCI Dividend | SMDV Dividend
