MUSA Dividend Type Payments

MURPHY USA INC dividend

Although MUSA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on MURPHY USA INC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:10 AM ET):

MURPHY USA INC (MUSA)
Bid Ask Last Change Volume P/E Market Cap
84.24 84.47 84.42 -0.89 11K 10 2.7B

MUSA Dividend-Like Income Using Covered Calls

With MUSA at 84.42, 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% 2.53 0.7
5% 4.22 1.2
10% 8.44 2.3

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 MUSA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 85.00 0.45 3 15.0 0.53 (0.6%)
Sep 21 90.00 0.60 38 1.6 5.53 (6.6%)
5% Yield On MUSA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 85.00 0.45 3 15.0 0.53 (0.6%)
Sep 21 90.00 0.60 38 1.6 5.53 (6.6%)
10% Yield On MUSA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 85.00 0.45 3 15.0 0.53 (0.6%)
Sep 21 85.00 2.25 38 5.9 0.53 (0.6%)

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