NBTB Dividend
Although NBTB has a dividend of 0.37 with an ex-dividend date of Aug 29, you can sell covered calls on NBT Bancorp Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| NBT Bancorp Inc. (NBTB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 37.07 | 43.99 | 40.56 | -0.82 | 267K | 14 | 2.0B |
NBTB Dividend-Like Income Using Covered Calls
With NBTB at 40.56, 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% | 1.22 | 0.3 |
| 5% | 2.03 | 0.6 |
| 10% | 4.06 | 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 NBTB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 45.00 | 0.20 | 50 | 0.4 | 1.01 (2.5%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | UPST dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | PTON dividend | |
| 3. | GLD dividend | 8. | QQQ dividend | 3. | APPS dividend | |
| 4. | IWM dividend | 9. | AMZN dividend | 4. | QBTS dividend | |
| 5. | SPY dividend | 10. | AAPL dividend | 5. | LYFT dividend | |
Want more examples? NBR Dividend | NCLH Dividend
