SMLP Dividend Type Payments
Although SMLP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Summit Midstream Partners, LP Common Units Representing Limited Partner to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| Summit Midstream Partners, LP Common Units Representing Limited Partner (SMLP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 27.50 | 29.00 | 27.76 | -0.05 | 27K | - | 0.6B |
SMLP Dividend-Like Income Using Covered Calls
With SMLP at 27.76, 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% | 0.83 | 0.2 |
| 5% | 1.39 | 0.4 |
| 10% | 2.78 | 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 SMLP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 30.00 | 0.15 | 29 | 0.5 | 1.00 (3.6%) | |
| Jun 21 | 30.00 | 0.75 | 64 | 1.2 | 1.00 (3.6%) | |
| 5% Yield On SMLP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 30.00 | 0.15 | 29 | 0.5 | 1.00 (3.6%) | |
| Jun 21 | 30.00 | 0.75 | 64 | 1.2 | 1.00 (3.6%) | |
| 10% Yield On SMLP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 21 | 30.00 | 0.75 | 64 | 1.2 | 1.00 (3.6%) | |
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | HYG dividend | 6. | KWEB dividend | 1. | CVNA dividend | |
| 2. | IWM dividend | 7. | EEM dividend | 2. | FSLY dividend | |
| 3. | FXI dividend | 8. | SLV dividend | 3. | CLSK dividend | |
| 4. | QQQ dividend | 9. | TSLA dividend | 4. | MARA dividend | |
| 5. | SPY dividend | 10. | EWZ dividend | 5. | EYPT dividend | |
Want more examples? SMLF Dividend | SMLV Dividend
