NEOG Dividend Type Payments

Neogen Corp dividend

Although NEOG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Neogen Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Neogen Corp (NEOG)
Bid Ask Last Change Volume P/E Market Cap
62.60 64.88 63.89 -0.08 165K 51 3.3B

NEOG Dividend-Like Income Using Covered Calls

With NEOG at 63.89, 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% 1.92 0.5
5% 3.19 0.9
10% 6.39 1.8

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 NEOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 70.00 0.70 122 0.6 5.12 (8.0%)
Oct 18 70.00 2.20 213 1.0 5.12 (8.0%)
5% Yield On NEOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 65.00 2.60 122 2.1 0.12 (0.2%)
Oct 18 70.00 2.20 213 1.0 5.12 (8.0%)
10% Yield On NEOG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 65.00 2.60 122 2.1 0.12 (0.2%)
Oct 18 65.00 4.40 213 2.1 0.12 (0.2%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Apr 18 Expiration     Top 5 High Yield
1.SPY dividend 6.FXI dividend   1.MU dividend
2.EEM dividend 7.BMY dividend   2.NBEV dividend
3.SPX dividend 8.AAPL dividend   3.MO dividend
4.QQQ dividend 9.IWM dividend   4.ROKU dividend
5.USO dividend 10.NIO dividend   5.BCRX dividend

Want more examples? NEO Dividend | NEON Dividend