ARLP Dividend

Although ARLP has a dividend of 0.70 with an ex-dividend date of May 8, you can sell covered calls on Alliance Resource Partners, L.P. - Common Units Representing Limited Par to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 1:50 PM ET):

Alliance Resource Partners, L.P. - Common Units Representing Limited Par (ARLP)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
27.85	27.91	27.90	+0.76	437K	7.7	3.5B

ARLP Dividend-Like Income Using Covered Calls

With ARLP at 27.90, 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%	0.84	0.2
5%	1.40	0.4
10%	2.79	0.8

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 ARLP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	30.00	0.80	145	0.6	2.09 (7.5%)
Dec 19	30.00	1.10	236	0.5	2.09 (7.5%)

5% Yield On ARLP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	30.00	0.80	145	0.6	2.09 (7.5%)
Dec 19	30.00	1.10	236	0.5	2.09 (7.5%)

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Want more examples? ARLO Dividend | ARM Dividend