MUSA Dividend Type Payments
Although MUSA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Murphy USA Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Murphy USA Inc. (MUSA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 181.68 | 560.00 | 448.66 | -3.08 | 211K | 19 | 9.0B |
MUSA Dividend-Like Income Using Covered Calls
With MUSA at 448.66, 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% | 13.46 | 3.7 |
| 5% | 22.43 | 6.1 |
| 10% | 44.87 | 12.3 |
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 MUSA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 560.00 | 8.90 | 219 | 4.1 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | QBTS dividend | |
| 2. | SPY dividend | 7. | KWEB dividend | 2. | DOCU dividend | |
| 3. | IWM dividend | 8. | INTC dividend | 3. | RCAT dividend | |
| 4. | FXI dividend | 9. | TSLA dividend | 4. | JBLU dividend | |
| 5. | EEM dividend | 10. | XLF dividend | 5. | VKTX dividend | |
Want more examples? MUR Dividend | MUST Dividend
