DKL Dividend
Although DKL has a dividend of 1.10 with an ex-dividend date of Nov 8, you can sell covered calls on Delek Logistics Partners, L.P. Common Units representing Limited Partner to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Delek Logistics Partners, L.P. Common Units representing Limited Partner (DKL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 38.98 | 40.90 | 39.81 | +0.53 | 225K | 14 | 1.9B |
DKL Dividend-Like Income Using Covered Calls
With DKL at 39.81, 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% | 1.19 | 0.3 |
| 5% | 1.99 | 0.5 |
| 10% | 3.98 | 1.1 |
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 DKL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 45.00 | 0.65 | 191 | 0.3 | 4.10 (10.3%) | |
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | IWM dividend | 1. | RDFN dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | AFRM dividend | |
| 3. | SLV dividend | 8. | TSLA dividend | 3. | DKNG dividend | |
| 4. | SPY dividend | 9. | XLF dividend | 4. | PINS dividend | |
| 5. | EEM dividend | 10. | EWZ dividend | 5. | IOVA dividend | |
Want more examples? DK Dividend | DKNG Dividend
