AM Dividend

ANTERO RESOURCES MIDSTREAM LLC dividend

Although AM has a dividend of 0.44 with an ex-dividend date of Nov 1, you can sell covered calls on ANTERO RESOURCES MIDSTREAM LLC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 1:40 PM ET):

ANTERO RESOURCES MIDSTREAM LLC (AM)
Bid Ask Last Change Volume P/E Market Cap
32.75 32.79 32.78 -0.40 214K 24 6.2B

AM Dividend-Like Income Using Covered Calls

With AM at 32.78, here's a table showing how big the annual "dividend" (ie. 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% 0.98 0.3
5% 1.64 0.4
10% 3.28 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 AM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 35.00 0.20 29 0.7 2.21 (6.7%)
Dec 21 35.00 0.35 64 0.5 2.21 (6.7%)
5% Yield On AM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 35.00 0.20 29 0.7 2.21 (6.7%)
Dec 21 35.00 0.35 64 0.5 2.21 (6.7%)

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