NEU Dividend

NewMarket Corp dividend

Although NEU has a dividend of 1.75 with an ex-dividend date of Dec 14, you can sell covered calls on NewMarket Corp 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):

NewMarket Corp (NEU)
Bid Ask Last Change Volume P/E Market Cap
403.95 404.29 404.83 -3.37 29K - 0.0B

NEU Dividend-Like Income Using Covered Calls

With NEU at 404.83, 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% 12.14 3.3
5% 20.24 5.5
10% 40.48 11.1

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 NEU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 415.00 0.50 15 3.3 10.71 (2.6%)
Jan 18 425.00 1.85 43 4.3 20.71 (5.1%)
5% Yield On NEU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 410.00 2.50 15 16.7 5.71 (1.4%)
Jan 18 420.00 2.50 43 5.8 15.71 (3.9%)
10% Yield On NEU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 410.00 2.50 15 16.7 5.71 (1.4%)
Jan 18 410.00 6.50 43 15.1 5.71 (1.4%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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Want more examples? NERV Dividend | NEWM Dividend