VNOM Dividend Type Payments
Although VNOM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Viper Energy, Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:05 AM ET):
| Viper Energy, Inc. - Class A (VNOM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 51.80 | 51.87 | 51.84 | -0.64 | 97K | 23 | 4.6B |
VNOM Dividend-Like Income Using Covered Calls
With VNOM at 51.84, 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% | 1.56 | 0.4 |
| 5% | 2.59 | 0.7 |
| 10% | 5.18 | 1.4 |
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 VNOM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 55.00 | 0.90 | 37 | 2.4 | 3.13 (6.0%) | |
| Aug 15 | 55.00 | 4.60 | 275 | 1.7 | 3.13 (6.0%) | |
| 5% Yield On VNOM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 55.00 | 0.90 | 37 | 2.4 | 3.13 (6.0%) | |
| Aug 15 | 55.00 | 4.60 | 275 | 1.7 | 3.13 (6.0%) | |
| 10% Yield On VNOM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 55.00 | 0.90 | 37 | 2.4 | 3.13 (6.0%) | |
| Aug 15 | 55.00 | 4.60 | 275 | 1.7 | 3.13 (6.0%) | |
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | IWM dividend | 1. | WULF dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | LAC dividend | |
| 3. | TSLA dividend | 8. | EEM dividend | 3. | AMAT dividend | |
| 4. | SPY dividend | 9. | EWZ dividend | 4. | NMRA dividend | |
| 5. | SLV dividend | 10. | SMCI dividend | 5. | ACI dividend | |
Want more examples? VNO Dividend | VNQ Dividend
