HESM Dividend Type Payments
Although HESM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Hess Midstream LP Class A Share to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
Hess Midstream LP Class A Share (HESM) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
34.50 | 37.20 | 34.85 | +0.11 | 694K | 17 | 2.8B |
HESM Dividend-Like Income Using Covered Calls
With HESM at 34.85, 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% | 1.05 | 0.3 |
5% | 1.74 | 0.5 |
10% | 3.49 | 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 HESM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 38.00 | 0.65 | 212 | 0.3 | 0.80 (2.3%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | HYG dividend | 6. | KWEB dividend | 1. | VNDA dividend | |
2. | IWM dividend | 7. | EEM dividend | 2. | CVNA dividend | |
3. | FXI dividend | 8. | SLV dividend | 3. | DJT dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | MPW dividend | |
5. | QQQ dividend | 10. | EWZ dividend | 5. | UPST dividend |
Want more examples? HES Dividend | HEWG Dividend