NBHC Dividend
Although NBHC has a dividend of 0.30 with an ex-dividend date of May 30, you can sell covered calls on National Bank Holdings Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:00 AM ET):
| National Bank Holdings Corporation (NBHC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 36.25 | 36.64 | 36.41 | +0.24 | 12K | 12 | 1.4B |
NBHC Dividend-Like Income Using Covered Calls
With NBHC at 36.41, 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% | 1.09 | 0.3 |
| 5% | 1.82 | 0.5 |
| 10% | 3.64 | 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:
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | ZETA dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | RDDT dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | HTZ dividend | |
| 4. | SLV dividend | 9. | TSLA dividend | 4. | SMMT dividend | |
| 5. | QQQ dividend | 10. | SNAP dividend | 5. | ABR dividend | |
Want more examples? NAVI Dividend | NBIX Dividend
