NCLH Dividend Type Payments

Norwegian Cruise Line Holdings dividend

Although NCLH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Norwegian Cruise Line Holdings to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 10:35 AM ET):

Norwegian Cruise Line Holdings (NCLH)
Bid Ask Last Change Volume P/E Market Cap
53.20 53.21 53.21 -0.17 349K 13 12B

NCLH Dividend-Like Income Using Covered Calls

With NCLH at 53.21, here's a table showing how big the annual "dividend" (ie. 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% 1.60 0.4
5% 2.66 0.7
10% 5.32 1.5

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 NCLH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 57.50 0.30 24 1.3 4.29 (8.1%)
Apr 18 60.00 0.30 58 0.5 6.79 (12.8%)
5% Yield On NCLH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 57.50 0.30 24 1.3 4.29 (8.1%)
Apr 18 57.50 0.75 58 1.3 4.29 (8.1%)
10% Yield On NCLH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 55.00 0.90 24 3.8 1.79 (3.4%)
Apr 18 55.00 1.55 58 2.7 1.79 (3.4%)

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