USM Dividend Type Payments
Although USM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on United States Cellular Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:20 PM ET):
| United States Cellular Corporation (USM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 69.39 | 69.55 | 69.41 | -0.23 | 76K | - | 5.9B |
USM Dividend-Like Income Using Covered Calls
With USM at 69.41, 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% | 2.08 | 0.6 |
| 5% | 3.47 | 1.0 |
| 10% | 6.94 | 1.9 |
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 | |
| Aug 15 | 70.00 | 2.20 | 32 | 6.9 | 0.45 (0.6%) | |
| Oct 17 | 70.00 | 4.80 | 95 | 5.1 | 0.45 (0.6%) | |
| 5% Yield On USM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 70.00 | 2.20 | 32 | 6.9 | 0.45 (0.6%) | |
| Oct 17 | 70.00 | 4.80 | 95 | 5.1 | 0.45 (0.6%) | |
| 10% Yield On USM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 70.00 | 2.20 | 32 | 6.9 | 0.45 (0.6%) | |
| Oct 17 | 70.00 | 4.80 | 95 | 5.1 | 0.45 (0.6%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | AAOI dividend | |
| 2. | SLV dividend | 7. | GLD dividend | 2. | CELC dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | LNTH dividend | |
| 4. | TSLA dividend | 9. | QQQ dividend | 4. | LMND dividend | |
| 5. | AAPL dividend | 10. | AMZN dividend | 5. | PRAX dividend | |
Want more examples? USL Dividend | USMC Dividend
