HESM Dividend Type Payments

Although HESM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Hess Midstream LP Class A Representing Limited Partner Interests 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):

Hess Midstream LP Class A Representing Limited Partner Interests (HESM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
36.67	37.50	37.03	+0.02	798K	16	3.4B

HESM Dividend-Like Income Using Covered Calls

With HESM at 37.03, 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%	1.11	0.3
5%	1.85	0.5
10%	3.70	1.0

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 HESM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	38.00	1.30	228	0.6	0.50 (1.4%)
May 16	39.00	0.70	137	0.5	1.50 (4.1%)

5% Yield On HESM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	38.00	1.30	228	0.6	0.50 (1.4%)
May 16	39.00	0.70	137	0.5	1.50 (4.1%)

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Want more examples? HES Dividend | HEWJ Dividend