USAC Dividend

Although USAC has a dividend of 0.53 with an ex-dividend date of Apr 28, you can sell covered calls on USA Compression Partners, LP Common Units Representing Limited Partner I to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

USA Compression Partners, LP Common Units Representing Limited Partner I (USAC)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
24.00	25.88	24.72	-0.50	187K	35	3.0B

USAC Dividend-Like Income Using Covered Calls

With USAC at 24.72, 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%	0.74	0.2
5%	1.24	0.3
10%	2.47	0.7

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 USAC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	27.50	0.35	152	0.2	1.62 (6.6%)
Jun 20	27.50	0.30	61	0.5	1.62 (6.6%)

5% Yield On USAC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jun 20	27.50	0.30	61	0.5	1.62 (6.6%)

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Want more examples? URTY Dividend | USAI Dividend