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 Wed 3:10 PM ET):
| CrossAmerica Partners LP Common Units representing limited partner inter (CAPL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 20.53 | 20.68 | 20.54 | -0.20 | 8K | 37 | 0.8B |
CAPL Dividend-Like Income Using Covered Calls
With CAPL at 20.54, 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% | 0.62 | 0.2 |
| 5% | 1.03 | 0.3 |
| 10% | 2.05 | 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 | |
| Jan 17 | 22.50 | 0.20 | 115 | 0.2 | 1.82 (8.9%) | |
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| Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | HYG dividend | 1. | DJT dividend | |
| 2. | IWM dividend | 7. | EEM dividend | 2. | UPST dividend | |
| 3. | SPY dividend | 8. | FXI dividend | 3. | PTON dividend | |
| 4. | SLV dividend | 9. | GLD dividend | 4. | CPRI dividend | |
| 5. | QQQ dividend | 10. | TLT dividend | 5. | WULF dividend | |
Want more examples? CAPE Dividend | CAPR Dividend
