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 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 (USAC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 14.20 | 16.50 | 14.50 | -0.07 | 324K | - | 0.0B |
USAC Dividend-Like Income Using Covered Calls
With USAC at 14.50, 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% | 0.44 | 0.1 |
| 5% | 0.73 | 0.2 |
| 10% | 1.45 | 0.4 |
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:
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| Top 10 Open Interest For Dec 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | EWZ dividend | 1. | dividend | |
| 2. | EEM dividend | 7. | FXI dividend | 2. | dividend | |
| 3. | SPX dividend | 8. | GE dividend | 3. | dividend | |
| 4. | QQQ dividend | 9. | BAC dividend | 4. | dividend | |
| 5. | IWM dividend | 10. | VXX dividend | 5. | dividend | |
Want more examples? URTY Dividend | USAI Dividend
