USAC Dividend
Although USAC has a dividend of 0.53 with an ex-dividend date of Apr 19, 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 Wed 4:16 PM ET):
USA Compression Partners, LP Common Units Representing Limited Partner I (USAC) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
24.97 | 25.50 | 24.97 | -0.03 | 317K | 125 | 2.4B |
USAC Dividend-Like Income Using Covered Calls
With USAC at 24.97, 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% | 0.75 | 0.2 |
5% | 1.25 | 0.3 |
10% | 2.50 | 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 | |
Jun 21 | 27.50 | 0.15 | 66 | 0.2 | 2.00 (8.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For Apr 19 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | SPY dividend | 6. | TLT dividend | 1. | INFY dividend | |
2. | IWM dividend | 7. | FXI dividend | 2. | DJT dividend | |
3. | QQQ dividend | 8. | AAPL dividend | 3. | CVNA dividend | |
4. | TSLA dividend | 9. | HYG dividend | 4. | FSLY dividend | |
5. | SLV dividend | 10. | NVDA dividend | 5. | UPST dividend |
Want more examples? URTY Dividend | USAI Dividend