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 Representing Limited Partner Interests 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):
| Hess Midstream LP Class A Representing Limited Partner Interests (HESM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 38.05 | 38.90 | 38.18 | +0.10 | 814K | 15 | 4.4B |
HESM Dividend-Like Income Using Covered Calls
With HESM at 38.18, 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% | 1.15 | 0.3 |
| 5% | 1.91 | 0.5 |
| 10% | 3.82 | 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 | |
| Aug 15 | 40.00 | 0.10 | 31 | 0.3 | 1.10 (2.9%) | |
| Nov 21 | 39.00 | 1.20 | 129 | 0.9 | 0.10 (0.3%) | |
| 5% Yield On HESM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 21 | 39.00 | 1.20 | 129 | 0.9 | 0.10 (0.3%) | |
| Feb 20 | 39.00 | 1.80 | 220 | 0.8 | 0.10 (0.3%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | METC dividend | |
| 2. | SLV dividend | 7. | GLD dividend | 2. | CELC dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | APLD dividend | |
| 4. | TSLA dividend | 9. | QQQ dividend | 4. | ELV dividend | |
| 5. | AAPL dividend | 10. | AMZN dividend | 5. | SEDG dividend | |
Want more examples? HES Dividend | HEWJ Dividend
