NS Dividend Type Payments

Nustar Energy dividend

Although NS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Nustar Energy 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):

Nustar Energy (NS)
Bid Ask Last Change Volume P/E Market Cap
27.00 28.10 27.62 +0.39 333K - 2.9B

NS Dividend-Like Income Using Covered Calls

With NS at 27.62, 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% 0.83 0.2
5% 1.38 0.4
10% 2.76 0.8

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 NS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 30.00 0.20 58 0.3 1.90 (6.9%)
Jun 21 30.00 0.30 93 0.3 1.90 (6.9%)
5% Yield On NS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 20 30.00 0.80 184 0.4 1.90 (6.9%)

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