UAN Dividend

Although UAN has a dividend of 2.26 with an ex-dividend date of May 12, you can sell covered calls on CVR Partners, 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 Thu 4:16 PM ET):

CVR Partners, LP Common Units representing Limited Partner Interests (UAN)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
78.90	80.49	79.34	-0.46	18K	14	0.8B

UAN Dividend-Like Income Using Covered Calls

With UAN at 79.34, 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%	2.38	0.7
5%	3.97	1.1
10%	7.93	2.2

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 UAN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	90.00	0.95	107	0.9	9.51 (12.0%)
Dec 19	100.00	2.00	233	0.9	19.51 (24.6%)

5% Yield On UAN Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	85.00	4.00	233	1.7	4.51 (5.7%)
Jun 20	85.00	0.75	51	1.5	4.51 (5.7%)

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