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 Wed 4:16 PM ET):
| National Grid Transco, PLC National Grid PLC (NEW) American Depositary S (NGG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 69.64 | 74.70 | 73.00 | -0.04 | 952K | - | 36B |
NGG Dividend-Like Income Using Covered Calls
With NGG at 73.00, 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% | 2.19 | 0.6 |
| 5% | 3.65 | 1.0 |
| 10% | 7.30 | 2.0 |
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 | |
| Sep 19 | 80.00 | 0.95 | 143 | 0.7 | 5.30 (7.3%) | |
| Dec 19 | 75.00 | 1.80 | 234 | 0.8 | 0.30 (0.4%) | |
| 5% Yield On NGG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jun 20 | 75.00 | 0.55 | 52 | 1.1 | 0.30 (0.4%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | ZETA dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | ENVX dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | HLF dividend | |
| 4. | SLV dividend | 9. | SNAP dividend | 4. | QCOM dividend | |
| 5. | QQQ dividend | 10. | TSLA dividend | 5. | RDDT dividend | |
Want more examples? NGD Dividend | NGL Dividend
