UAN Dividend Type Payments
Although UAN has no upcoming (meaning, Board-approved and announced) dividends, 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 Fri 2:10 PM ET):
| CVR Partners, LP Common Units representing Limited Partner Interests (UAN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 102.00 | 102.97 | 102.97 | +0.08 | 5K | 8.5 | 1.1B |
UAN Dividend-Like Income Using Covered Calls
With UAN at 102.97, 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% | 3.09 | 0.8 |
| 5% | 5.15 | 1.4 |
| 10% | 10.30 | 2.8 |
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 UAN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 105.00 | 2.40 | 99 | 2.4 | 2.03 (2.0%) | |
| Feb 20 | 105.00 | 0.80 | 15 | 5.3 | 2.03 (2.0%) | |
| 5% Yield On UAN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 105.00 | 2.40 | 99 | 2.4 | 2.03 (2.0%) | |
| Feb 20 | 105.00 | 0.80 | 15 | 5.3 | 2.03 (2.0%) | |
| 10% Yield On UAN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 105.00 | 0.80 | 15 | 5.3 | 2.03 (2.0%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | CLSK dividend | |
| 2. | KWEB dividend | 7. | SPY dividend | 2. | QUBT dividend | |
| 3. | NVDA dividend | 8. | EWZ dividend | 3. | SMR dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | ONDS dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | RIVN dividend | |
Want more examples? UAMY Dividend | UBER Dividend
