USAC Dividend Type Payments
Although USAC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on USA Compression Partners, LP Common Units Representing Limited Partner I 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):
| USA Compression Partners, LP Common Units Representing Limited Partner I (USAC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 24.55 | 25.98 | 24.69 | +0.10 | 76K | 36 | 2.9B |
USAC Dividend-Like Income Using Covered Calls
With USAC at 24.69, 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% | 0.74 | 0.2 |
| 5% | 1.23 | 0.3 |
| 10% | 2.47 | 0.7 |
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 19 | 27.50 | 0.20 | 71 | 0.3 | 1.52 (6.2%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | NFE dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | APPS dividend | |
| 3. | SPY dividend | 8. | IBIT dividend | 3. | BRSL dividend | |
| 4. | TSLA dividend | 9. | TLT dividend | 4. | METC dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | PROK dividend | |
Want more examples? URTY Dividend | USAI Dividend
