VNOM Dividend Type Payments

Viper Energy, Inc. - Class A dividend

Although VNOM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Viper Energy, Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Viper Energy, Inc. - Class A (VNOM)
Bid Ask Last Change Volume P/E Market Cap
39.10 42.38 40.34 +0.20 982K 10 5.3B

VNOM Dividend-Like Income Using Covered Calls

With VNOM at 40.34, 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% 1.21 0.3
5% 2.02 0.6
10% 4.03 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 VNOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 43.00 1.60 80 2.0 0.62 (1.5%)
Jul 18 43.00 0.95 52 1.8 0.62 (1.5%)
5% Yield On VNOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 43.00 1.60 80 2.0 0.62 (1.5%)
Jul 18 43.00 0.95 52 1.8 0.62 (1.5%)
10% Yield On VNOM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 43.00 1.60 80 2.0 0.62 (1.5%)
Jul 18 43.00 0.95 52 1.8 0.62 (1.5%)

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