ARLP Dividend Type Payments
Although ARLP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Alliance Resource Partners, L.P. - Common Units Representing Limited Par to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:20 PM ET):
| Alliance Resource Partners, L.P. - Common Units Representing Limited Par (ARLP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 24.63 | 24.68 | 24.66 | -0.64 | 397K | 12 | 3.2B |
ARLP Dividend-Like Income Using Covered Calls
With ARLP at 24.66, 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% | 0.74 | 0.2 |
| 5% | 1.23 | 0.3 |
| 10% | 2.47 | 0.7 |
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 ARLP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 25.00 | 0.60 | 40 | 1.5 | 0.32 (1.3%) | |
| Dec 19 | 25.00 | 1.25 | 131 | 1.0 | 0.32 (1.3%) | |
| 5% Yield On ARLP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 25.00 | 0.60 | 40 | 1.5 | 0.32 (1.3%) | |
| Dec 19 | 25.00 | 1.25 | 131 | 1.0 | 0.32 (1.3%) | |
| 10% Yield On ARLP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 25.00 | 0.60 | 40 | 1.5 | 0.32 (1.3%) | |
| Dec 19 | 25.00 | 1.25 | 131 | 1.0 | 0.32 (1.3%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | MBX dividend | |
| 2. | SLV dividend | 7. | GLD dividend | 2. | CRML dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | AAP dividend | |
| 4. | IWM dividend | 9. | INTC dividend | 4. | DLO dividend | |
| 5. | IBIT dividend | 10. | QQQ dividend | 5. | REPL dividend | |
Want more examples? ARLO Dividend | ARM Dividend
