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 12:05 PM ET):
| USA Compression Partners LP (USAC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 15.91 | 15.95 | 15.91 | +0.34 | 253K | - | 1.5B |
USAC Dividend-Like Income Using Covered Calls
With USAC at 15.91, 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% | 0.48 | 0.1 |
| 5% | 0.80 | 0.2 |
| 10% | 1.59 | 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 Mar 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPX dividend | 6. | EWZ dividend | 1. | CRON dividend | |
| 2. | EEM dividend | 7. | GE dividend | 2. | FIT dividend | |
| 3. | SPY dividend | 8. | LLY dividend | 3. | AMRN dividend | |
| 4. | QQQ dividend | 9. | BAC dividend | 4. | KPTI dividend | |
| 5. | FXI dividend | 10. | GLD dividend | 5. | IMGN dividend | |
Want more examples? URTY Dividend | USAI Dividend
