SUN Dividend Type Payments
Although SUN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Sunoco LP Common Units 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 12:30 PM ET):
| Sunoco LP Common Units representing limited partner interests (SUN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 54.14 | 54.25 | 54.25 | +0.37 | 213K | 12 | 7.3B |
SUN Dividend-Like Income Using Covered Calls
With SUN at 54.25, 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% | 1.63 | 0.4 |
| 5% | 2.71 | 0.7 |
| 10% | 5.43 | 1.5 |
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 SUN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 55.00 | 0.80 | 32 | 2.5 | 0.75 (1.4%) | |
| Jan 17 | 55.00 | 1.45 | 60 | 2.4 | 0.75 (1.4%) | |
| 5% Yield On SUN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 55.00 | 0.80 | 32 | 2.5 | 0.75 (1.4%) | |
| Jan 17 | 55.00 | 1.45 | 60 | 2.4 | 0.75 (1.4%) | |
| 10% Yield On SUN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 55.00 | 0.80 | 32 | 2.5 | 0.75 (1.4%) | |
| Jan 17 | 55.00 | 1.45 | 60 | 2.4 | 0.75 (1.4%) | |
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| Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | SAVA dividend | |
| 2. | SPY dividend | 7. | XLF dividend | 2. | HUT dividend | |
| 3. | EEM dividend | 8. | KWEB dividend | 3. | CRVS dividend | |
| 4. | FXI dividend | 9. | TLT dividend | 4. | ANAB dividend | |
| 5. | IWM dividend | 10. | AAPL dividend | 5. | RCAT dividend | |
Want more examples? SUM Dividend | SUP Dividend
