NGL Dividend Type Payments
Although NGL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NGL ENERGY PARTNERS LP Common Units representing Limited Partner Interes to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 3:55 PM ET):
| NGL ENERGY PARTNERS LP Common Units representing Limited Partner Interes (NGL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 6.30 | 6.31 | 6.30 | -0.32 | 397K | - | 0.9B |
NGL Dividend-Like Income Using Covered Calls
With NGL at 6.30, 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% | 0.19 | 0.1 |
| 5% | 0.32 | 0.1 |
| 10% | 0.63 | 0.2 |
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 NGL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 7.00 | 0.10 | 26 | 0.4 | 0.69 (11.0%) | |
| Nov 21 | 7.00 | 0.25 | 61 | 0.4 | 0.69 (11.0%) | |
| 5% Yield On NGL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 7.00 | 0.10 | 26 | 0.4 | 0.69 (11.0%) | |
| Nov 21 | 7.00 | 0.25 | 61 | 0.4 | 0.69 (11.0%) | |
| 10% Yield On NGL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 7.00 | 0.10 | 26 | 0.4 | 0.69 (11.0%) | |
| Nov 21 | 7.00 | 0.25 | 61 | 0.4 | 0.69 (11.0%) | |
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| Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IWM dividend | 1. | QURE dividend | |
| 2. | NVDA dividend | 7. | FXI dividend | 2. | ARCT dividend | |
| 3. | GLD dividend | 8. | PCG dividend | 3. | CIFR dividend | |
| 4. | IBIT dividend | 9. | SPY dividend | 4. | QBTS dividend | |
| 5. | EEM dividend | 10. | HYG dividend | 5. | RGTI dividend | |
Want more examples? NGG Dividend | NGS Dividend
