USAC Dividend Type Payments

USA COMPRESSION PARTNERS LP dividend

Although USAC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on USA COMPRESSION PARTNERS LP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:50 PM ET):

USA COMPRESSION PARTNERS LP (USAC)
Bid Ask Last Change Volume P/E Market Cap
17.10 17.13 17.12 +0.16 131K - 1.6B

USAC Dividend-Like Income Using Covered Calls

With USAC at 17.12, 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% 0.51 0.1
5% 0.86 0.2
10% 1.71 0.5

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 USAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 17.50 0.25 38 0.7 0.37 (2.2%)
Dec 21 17.50 0.60 129 0.5 0.37 (2.2%)
5% Yield On USAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 17.50 0.25 38 0.7 0.37 (2.2%)
Dec 21 17.50 0.60 129 0.5 0.37 (2.2%)
10% Yield On USAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 17.50 0.25 38 0.7 0.37 (2.2%)

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

 
 
Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.UVXY dividend
2.EEM dividend 7.FB dividend   2.NVDA dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.GLD dividend   4.AMAT dividend
5.BAC dividend 10.AABA dividend   5.DBD dividend

Want more examples? URTY Dividend | USAG Dividend