USAT Dividend Type Payments

USA Technologies, Inc dividend

Although USAT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on USA Technologies, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:30 PM ET):

USA Technologies, Inc (USAT)
Bid Ask Last Change Volume P/E Market Cap
4.02 4.03 4.03 -0.08 447K - 0.0B

USAT Dividend-Like Income Using Covered Calls

With USAT at 4.03, 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% 0.12 0.0
5% 0.20 0.1
10% 0.40 0.1

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 USAT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 5.00 0.10 11 0.9 0.97 (24.1%)
Jan 18 5.00 0.25 39 0.6 0.97 (24.1%)
5% Yield On USAT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 5.00 0.10 11 0.9 0.97 (24.1%)
Jan 18 5.00 0.25 39 0.6 0.97 (24.1%)
10% Yield On USAT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 5.00 0.10 11 0.9 0.97 (24.1%)
Jan 18 5.00 0.25 39 0.6 0.97 (24.1%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.GWB dividend 6.QUOT dividend   1. dividend
2.AXDX dividend 7.HCCI dividend   2. dividend
3.QQEW dividend 8.BAP dividend   3. dividend
4.HAIN dividend 9.RBS dividend   4. dividend
5.AZO dividend 10.HEAR dividend   5. dividend

Want more examples? USAI Dividend | USB Dividend