OGS Dividend Type Payments

Although OGS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ONE Gas, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

ONE Gas, Inc (OGS)
Bid Ask Last Change Volume P/E Market Cap
81.26 90.38 90.38 -0.23 142K 28 4.8B

OGS Dividend-Like Income Using Covered Calls

With OGS at 90.38, 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% 2.71 0.7
5% 4.52 1.2
10% 9.04 2.5

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 OGS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 90.00 1.65 26 4.9 0.00 (0.0%)
Oct 18 95.00 1.10 89 1.2 4.62 (5.1%)
5% Yield On OGS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 90.00 1.65 26 4.9 0.00 (0.0%)
Oct 18 90.00 3.10 89 3.1 0.00 (0.0%)
10% Yield On OGS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 90.00 1.65 26 4.9 0.00 (0.0%)
Oct 18 90.00 3.10 89 3.1 0.00 (0.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Aug 16 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.FXI dividend 7.NIO dividend   2.TWTR dividend
3.EEM dividend 8.BAC dividend   3.S dividend
4.SPX dividend 9.IWM dividend   4.ITCI dividend
5.GDX dividend 10.GLD dividend   5.TSLA dividend

Want more examples? OGE Dividend | OHI Dividend