CAPL Dividend Type Payments
Although CAPL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CrossAmerica Partners LP Common Units representing limited partner inter to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 3:45 PM ET):
| CrossAmerica Partners LP Common Units representing limited partner inter (CAPL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 20.06 | 20.18 | 20.11 | -0.09 | 15K | 36 | 0.8B |
CAPL Dividend-Like Income Using Covered Calls
With CAPL at 20.11, 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% | 0.60 | 0.2 |
| 5% | 1.01 | 0.3 |
| 10% | 2.01 | 0.6 |
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 CAPL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 22.50 | 0.30 | 155 | 0.2 | 2.32 (11.5%) | |
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | IWM dividend | 1. | LUNR dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | WULF 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. | RUN dividend | |
Want more examples? CAPE Dividend | CAPR Dividend
