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 Thu 4:16 PM ET):
Viper Energy, Inc. - Class A (VNOM) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
38.05 | 38.69 | 38.05 | -0.71 | 1.2M | 10 | 5.1B |
VNOM Dividend-Like Income Using Covered Calls
With VNOM at 38.05, 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% | 1.14 | 0.3 |
5% | 1.90 | 0.5 |
10% | 3.81 | 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 | |
Aug 15 | 39.00 | 1.35 | 44 | 3.1 | 0.31 (0.8%) | |
Jul 18 | 39.00 | 0.35 | 16 | 2.2 | 0.31 (0.8%) |
5% Yield On VNOM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 39.00 | 1.35 | 44 | 3.1 | 0.31 (0.8%) | |
Jul 18 | 39.00 | 0.35 | 16 | 2.2 | 0.31 (0.8%) |
10% Yield On VNOM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 39.00 | 1.35 | 44 | 3.1 | 0.31 (0.8%) | |
Jul 18 | 39.00 | 0.35 | 16 | 2.2 | 0.31 (0.8%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | GLD dividend | 1. | QUBT dividend | |
2. | SLV dividend | 7. | AAPL dividend | 2. | COGT dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | IONQ dividend | |
4. | IWM dividend | 9. | IBIT dividend | 4. | TMC dividend | |
5. | TSLA dividend | 10. | QQQ dividend | 5. | SMMT dividend |
Want more examples? VNO Dividend | VNQ Dividend