VNOM Dividend

Although VNOM has a dividend of 0.53 with an ex-dividend date of Aug 14, 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 Tue 4:16 PM ET):

Viper Energy, Inc. - Class A (VNOM)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
37.30	38.40	38.17	+0.88	2.0M	10	4.9B

VNOM Dividend-Like Income Using Covered Calls

With VNOM at 38.17, 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%	1.15	0.3
5%	1.91	0.5
10%	3.82	1.0

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
Sep 19	39.00	1.00	39	2.6	0.60 (1.6%)
Dec 19	39.00	2.40	130	1.8	0.60 (1.6%)

5% Yield On VNOM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	39.00	1.00	39	2.6	0.60 (1.6%)
Dec 19	39.00	2.40	130	1.8	0.60 (1.6%)

10% Yield On VNOM Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	39.00	1.00	39	2.6	0.60 (1.6%)
Dec 19	39.00	2.40	130	1.8	0.60 (1.6%)

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Want more examples? VNO Dividend | VNQ Dividend