BPL Dividend Type Payments

Buckeye Partners LP dividend

Although BPL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Buckeye Partners LP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Buckeye Partners LP (BPL)
Bid Ask Last Change Volume P/E Market Cap
33.00 33.68 33.27 +0.07 988K - 5.1B

BPL Dividend-Like Income Using Covered Calls

With BPL at 33.27, 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% 1.00 0.3
5% 1.66 0.5
10% 3.33 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 BPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 35.00 0.10 24 0.4 1.32 (4.0%)
Apr 18 36.00 0.25 58 0.4 2.32 (7.0%)
5% Yield On BPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 34.00 0.35 24 1.5 0.32 (1.0%)
Apr 18 35.00 0.50 58 0.9 1.32 (4.0%)
10% Yield On BPL Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 34.00 0.35 24 1.5 0.32 (1.0%)
Apr 18 34.00 0.85 58 1.5 0.32 (1.0%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.VIPS dividend
2.EEM dividend 7.GE dividend   2.ROKU dividend
3.SPY dividend 8.BAC dividend   3.FSLR dividend
4.QQQ dividend 9.XOP dividend   4.IQ dividend
5.FXI dividend 10.LLY dividend   5.TTD dividend

Want more examples? BPI Dividend | BPMC Dividend