UAN Dividend Type Payments
Although UAN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CVR Partners, 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 Fri 4:16 PM ET):
| CVR Partners, LP Common Units representing Limited Partner Interests (UAN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 71.64 | 76.50 | 75.25 | +0.11 | 16K | 15 | 0.8B |
UAN Dividend-Like Income Using Covered Calls
With UAN at 75.25, 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% | 2.26 | 0.6 |
| 5% | 3.76 | 1.0 |
| 10% | 7.53 | 2.1 |
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 UAN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 100.00 | 2.25 | 232 | 1.0 | 23.50 (31.2%) | |
| May 16 | 100.00 | 1.65 | 141 | 1.2 | 23.50 (31.2%) | |
| 5% Yield On UAN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 80.00 | 5.20 | 232 | 2.2 | 3.50 (4.7%) | |
| May 16 | 100.00 | 1.65 | 141 | 1.2 | 23.50 (31.2%) | |
| 10% Yield On UAN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 80.00 | 5.20 | 232 | 2.2 | 3.50 (4.7%) | |
| May 16 | 80.00 | 4.30 | 141 | 3.0 | 3.50 (4.7%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | XLF dividend | 1. | NMRA dividend | |
| 2. | SLV dividend | 7. | SPY dividend | 2. | QBTS dividend | |
| 3. | AAPL dividend | 8. | IWM dividend | 3. | QUBT dividend | |
| 4. | EEM dividend | 9. | TSLA dividend | 4. | QS dividend | |
| 5. | INTC dividend | 10. | TLT dividend | 5. | JSPR dividend | |
Want more examples? UAMY Dividend | UBER Dividend
