VNOM Dividend Type Payments
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 Mon 4:16 PM ET):
Viper Energy, Inc. - Class A (VNOM) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
50.15 | 52.60 | 51.29 | +1.07 | 1.2M | 17 | 4.4B |
VNOM Dividend-Like Income Using Covered Calls
With VNOM at 51.29, 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% | 1.54 | 0.4 |
5% | 2.56 | 0.7 |
10% | 5.13 | 1.4 |
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 | |
Nov 15 | 55.00 | 1.10 | 40 | 2.8 | 2.40 (4.7%) | |
Oct 18 | 55.00 | 0.25 | 12 | 2.1 | 2.40 (4.7%) |
5% Yield On VNOM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 55.00 | 1.10 | 40 | 2.8 | 2.40 (4.7%) | |
Oct 18 | 55.00 | 0.25 | 12 | 2.1 | 2.40 (4.7%) |
10% Yield On VNOM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 55.00 | 1.10 | 40 | 2.8 | 2.40 (4.7%) | |
Oct 18 | 55.00 | 0.25 | 12 | 2.1 | 2.40 (4.7%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | ASTS dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | LYFT dividend | |
3. | SPY dividend | 8. | SMCI dividend | 3. | AEHR dividend | |
4. | FXI dividend | 9. | KWEB dividend | 4. | JOBY dividend | |
5. | QQQ dividend | 10. | HYG dividend | 5. | COIN dividend |
Want more examples? VNO Dividend | VNQ Dividend