SUN Dividend
Although SUN has a dividend of 0.91 with an ex-dividend date of Aug 8, you can sell covered calls on Sunoco LP Common Units representing limited partner interests 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):
| Sunoco LP Common Units representing limited partner interests (SUN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 53.71 | 54.75 | 54.23 | +0.56 | 217K | 10 | 7.3B |
SUN Dividend-Like Income Using Covered Calls
With SUN at 54.23, 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% | 1.63 | 0.4 |
| 5% | 2.71 | 0.7 |
| 10% | 5.42 | 1.5 |
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 SUN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 55.00 | 0.35 | 12 | 2.9 | 0.25 (0.5%) | |
| Sep 19 | 55.00 | 1.00 | 47 | 2.1 | 0.25 (0.5%) | |
| 5% Yield On SUN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 55.00 | 0.35 | 12 | 2.9 | 0.25 (0.5%) | |
| Sep 19 | 55.00 | 1.00 | 47 | 2.1 | 0.25 (0.5%) | |
| 10% Yield On SUN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 55.00 | 0.35 | 12 | 2.9 | 0.25 (0.5%) | |
| Sep 19 | 55.00 | 1.00 | 47 | 2.1 | 0.25 (0.5%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | GLD dividend | 1. | HIMS dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | UPST dividend | |
| 3. | IWM dividend | 8. | AMZN dividend | 3. | APP dividend | |
| 4. | SPY dividend | 9. | QQQ dividend | 4. | AAOI dividend | |
| 5. | IBIT dividend | 10. | INTC dividend | 5. | LYFT dividend | |
Want more examples? SUI Dividend | SUNS Dividend
