NGG Dividend Type Payments
Although NGG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on National Grid Transco, PLC National Grid PLC (NEW) American Depositary S to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:30 PM ET):
| National Grid Transco, PLC National Grid PLC (NEW) American Depositary S (NGG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 70.98 | 71.01 | 70.99 | +0.90 | 351K | - | 35B |
NGG Dividend-Like Income Using Covered Calls
With NGG at 70.99, 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% | 2.13 | 0.6 |
| 5% | 3.55 | 1.0 |
| 10% | 7.10 | 1.9 |
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 NGG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 75.00 | 0.25 | 26 | 1.0 | 3.99 (5.6%) | |
| Dec 19 | 75.00 | 1.25 | 89 | 1.4 | 3.99 (5.6%) | |
| 5% Yield On NGG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 75.00 | 1.25 | 89 | 1.4 | 3.99 (5.6%) | |
| Nov 21 | 75.00 | 0.90 | 61 | 1.5 | 3.99 (5.6%) | |
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| Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IWM dividend | 1. | QURE dividend | |
| 2. | NVDA dividend | 7. | FXI dividend | 2. | ARCT dividend | |
| 3. | GLD dividend | 8. | PCG dividend | 3. | QBTS dividend | |
| 4. | IBIT dividend | 9. | SPY dividend | 4. | RGTI dividend | |
| 5. | EEM dividend | 10. | HYG dividend | 5. | OPEN dividend | |
Want more examples? NGD Dividend | NGL Dividend
