USM Dividend Type Payments
Although USM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on United States Cellular Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| United States Cellular Corp (USM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 46.98 | 46.99 | 46.99 | -0.76 | 178K | 26 | 2.5B |
USM Dividend-Like Income Using Covered Calls
With USM at 46.99, 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% | 1.41 | 0.4 |
| 5% | 2.35 | 0.6 |
| 10% | 4.70 | 1.3 |
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 USM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 19 | 50.00 | 0.40 | 25 | 1.6 | 3.01 (6.4%) | |
| Aug 16 | 55.00 | 0.40 | 53 | 0.8 | 8.01 (17.0%) | |
| 5% Yield On USM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 19 | 50.00 | 0.40 | 25 | 1.6 | 3.01 (6.4%) | |
| Aug 16 | 55.00 | 0.40 | 53 | 0.8 | 8.01 (17.0%) | |
| 10% Yield On USM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 19 | 50.00 | 0.40 | 25 | 1.6 | 3.01 (6.4%) | |
| Aug 16 | 50.00 | 1.40 | 53 | 2.6 | 3.01 (6.4%) | |
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| Top 10 Open Interest For Jul 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | USO dividend | 1. | BYND dividend | |
| 2. | SPX dividend | 7. | OIH dividend | 2. | BB dividend | |
| 3. | EEM dividend | 8. | QCOM dividend | 3. | ITCI dividend | |
| 4. | QQQ dividend | 9. | FXI dividend | 4. | KPTI dividend | |
| 5. | IWM dividend | 10. | AAPL dividend | 5. | OSTK dividend | |
Want more examples? USL Dividend | USMC Dividend
