NEU Dividend Type Payments

NEWMARKET dividend

Although NEU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NEWMARKET to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 9:50 AM ET):

NEWMARKET (NEU)
Bid Ask Last Change Volume P/E Market Cap
377.78 389.46 381.48 +0.83 0K 25 4.4B

NEU Dividend-Like Income Using Covered Calls

With NEU at 381.48, 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% 11.44 3.1
5% 19.07 5.2
10% 38.15 10.5

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 NEU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 400.00 2.00 29 6.9 10.54 (2.8%)
Dec 21 405.00 3.00 64 4.7 15.54 (4.1%)
5% Yield On NEU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 400.00 2.00 29 6.9 10.54 (2.8%)
Dec 21 400.00 4.50 64 7.0 10.54 (2.8%)
10% Yield On NEU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 395.00 3.50 29 12.1 5.54 (1.5%)
Dec 21 390.00 8.50 64 13.3 0.54 (0.1%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.SKX dividend
2.EWZ dividend 7.FXI dividend   2.UVXY dividend
3.EEM dividend 8.VXX dividend   3.CLVS dividend
4.PBR dividend 9.IWM dividend   4.TLRY dividend
5.QQQ dividend 10.BAC dividend   5.CZR dividend

Want more examples? NERV Dividend | NEWM Dividend