NFE Dividend Type Payments
Although NFE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on New Fortress Energy Inc. - Class A 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):
| New Fortress Energy Inc. - Class A (NFE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 2.13 |
2.14 |
2.15 |
-0.08 |
16.0M |
- |
0.6B |
NFE Dividend-Like Income Using Covered Calls
With NFE at 2.15, 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% |
0.06 |
0.0 |
| 5% |
0.11 |
0.0 |
| 10% |
0.22 |
0.1 |
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 NFE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
2.50 |
0.15 |
16 |
0.9 |
0.36 (16.7%) |
| Jul 11 |
2.50 |
0.10 |
24 |
0.4 |
0.36 (16.7%) |
| 5% Yield On NFE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
2.50 |
0.15 |
16 |
0.9 |
0.36 (16.7%) |
| Jul 11 |
2.50 |
0.10 |
24 |
0.4 |
0.36 (16.7%) |
| 10% Yield On NFE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
2.50 |
0.15 |
16 |
0.9 |
0.36 (16.7%) |
| Jul 11 |
2.50 |
0.10 |
24 |
0.4 |
0.36 (16.7%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
