USAC Dividend Type Payments

USA Compression Partners, LP Common Units Representing Limited Partner I dividend

Although USAC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on USA Compression Partners, LP Common Units Representing Limited Partner I to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

USA Compression Partners, LP Common Units Representing Limited Partner I (USAC)
Bid Ask Last Change Volume P/E Market Cap
25.88 26.55 26.35 +0.20 203K 33 3.2B

USAC Dividend-Like Income Using Covered Calls

With USAC at 26.35, 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% 0.79 0.2
5% 1.32 0.4
10% 2.64 0.7

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 USAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 27.50 0.30 43 0.7 0.95 (3.6%)
Jun 18 27.50 0.85 133 0.6 0.95 (3.6%)
5% Yield On USAC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 20 27.50 0.30 43 0.7 0.95 (3.6%)
Jun 18 27.50 0.85 133 0.6 0.95 (3.6%)

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