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 Fri 4:16 PM ET):
| Alliance Resource Partners, L.P. - Common Units Representing Limited Par (ARLP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 24.05 | 25.10 | 24.05 | -0.44 | 224K | 14 | 3.1B |
ARLP Dividend-Like Income Using Covered Calls
With ARLP at 24.05, 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% | 0.72 | 0.2 |
| 5% | 1.20 | 0.3 |
| 10% | 2.41 | 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 | |
| Dec 19 | 25.00 | 0.50 | 64 | 0.6 | 0.00 (0.0%) | |
| Nov 21 | 25.00 | 0.55 | 36 | 1.3 | 0.00 (0.0%) | |
| 5% Yield On ARLP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 25.00 | 0.50 | 64 | 0.6 | 0.00 (0.0%) | |
| Nov 21 | 25.00 | 0.55 | 36 | 1.3 | 0.00 (0.0%) | |
| 10% Yield On ARLP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 21 | 25.00 | 0.55 | 36 | 1.3 | 0.00 (0.0%) | |
| Mar 20 | 25.00 | 1.25 | 155 | 0.7 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | GLD dividend | 1. | CIFR dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | INBX dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | USAR dividend | |
| 4. | SLV dividend | 9. | INTC dividend | 4. | BHVN dividend | |
| 5. | HYG dividend | 10. | QQQ dividend | 5. | IREN dividend | |
Want more examples? ARLO Dividend | ARM Dividend
