NGG Dividend

Although NGG has a dividend of 1.07 with an ex-dividend date of Nov 21, 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 Tue 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
74.54	78.50	77.53	-0.41	751K	-	39B

NGG Dividend-Like Income Using Covered Calls

With NGG at 77.53, 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%	2.33	0.6
5%	3.88	1.1
10%	7.75	2.1

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 NGG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	80.00	0.50	32	1.6	1.50 (1.9%)
Feb 20	80.00	1.75	95	1.8	1.50 (1.9%)

5% Yield On NGG Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	80.00	0.50	32	1.6	1.50 (1.9%)
Feb 20	80.00	1.75	95	1.8	1.50 (1.9%)

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Want more examples? NGD Dividend | NGL Dividend