DKL Dividend Type Payments
Although DKL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Delek Logistics Partners, L.P. Common Units representing Limited Partner to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:30 PM ET):
Delek Logistics Partners, L.P. Common Units representing Limited Partner (DKL) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
37.95 | 38.00 | 37.98 | +0.30 | 45K | 13 | 1.7B |
DKL Dividend-Like Income Using Covered Calls
With DKL at 37.98, 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% | 1.14 | 0.3 |
5% | 1.90 | 0.5 |
10% | 3.80 | 1.0 |
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 DKL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 40.00 | 0.45 | 30 | 1.5 | 2.00 (5.3%) | |
Aug 16 | 40.00 | 1.10 | 121 | 0.9 | 2.00 (5.3%) |
5% Yield On DKL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 40.00 | 0.45 | 30 | 1.5 | 2.00 (5.3%) | |
Aug 16 | 40.00 | 1.10 | 121 | 0.9 | 2.00 (5.3%) |
10% Yield On DKL Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
May 17 | 40.00 | 0.45 | 30 | 1.5 | 2.00 (5.3%) |
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Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | SPY dividend | 6. | TLT dividend | 1. | DJT dividend | |
2. | IWM dividend | 7. | AAPL dividend | 2. | EYPT dividend | |
3. | QQQ dividend | 8. | FXI dividend | 3. | KSS dividend | |
4. | TSLA dividend | 9. | HYG dividend | 4. | CVNA dividend | |
5. | SLV dividend | 10. | NVDA dividend | 5. | CLSK dividend |
Want more examples? DK Dividend | DKNG Dividend