NBTB Dividend
Although NBTB has a dividend of 0.37 with an ex-dividend date of Dec 1, 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 Tue 4:16 PM ET):
| NBT Bancorp Inc. (NBTB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 39.42 | 44.95 | 41.69 | +0.18 | 130K | 15 | 2.2B |
NBTB Dividend-Like Income Using Covered Calls
With NBTB at 41.69, 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% | 1.25 | 0.3 |
| 5% | 2.08 | 0.6 |
| 10% | 4.17 | 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 | |
| Nov 21 | 45.00 | 0.05 | 11 | 0.5 | 0.05 (0.1%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | SERV dividend | |
| 2. | NVDA dividend | 7. | ASST dividend | 2. | TMC dividend | |
| 3. | KVUE dividend | 8. | SPY dividend | 3. | IREN dividend | |
| 4. | SLV dividend | 9. | INTC dividend | 4. | CRCL dividend | |
| 5. | GLD dividend | 10. | QQQ dividend | 5. | IONQ dividend | |
Want more examples? NBR Dividend | NCLH Dividend
