NGL Dividend Type Payments
Although NGL has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NGL ENERGY PARTNERS LP Common Units representing Limited Partner Interes to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| NGL ENERGY PARTNERS LP Common Units representing Limited Partner Interes (NGL) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 4.21 | 4.50 | 4.35 | +0.10 | 159K | - | 0.6B |
NGL Dividend-Like Income Using Covered Calls
With NGL at 4.35, 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% | 0.13 | 0.0 |
| 5% | 0.22 | 0.1 |
| 10% | 0.44 | 0.1 |
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 NGL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 5.00 | 0.05 | 18 | 0.3 | 0.50 (11.5%) | |
| Oct 17 | 5.00 | 0.05 | 81 | 0.1 | 0.50 (11.5%) | |
| 5% Yield On NGL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 5.00 | 0.05 | 18 | 0.3 | 0.50 (11.5%) | |
| Oct 17 | 5.00 | 0.05 | 81 | 0.1 | 0.50 (11.5%) | |
| 10% Yield On NGL Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 5.00 | 0.05 | 18 | 0.3 | 0.50 (11.5%) | |
| Sep 19 | 5.00 | 0.10 | 53 | 0.2 | 0.50 (11.5%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | NET dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | APLD dividend | |
| 3. | GLD dividend | 8. | AMZN dividend | 3. | CAR dividend | |
| 4. | IWM dividend | 9. | QQQ dividend | 4. | RDDT dividend | |
| 5. | SPY dividend | 10. | INTC dividend | 5. | AUR dividend | |
Want more examples? NGG Dividend | NGS Dividend
