NHI Dividend
Although NHI has a dividend of 1.05 with an ex-dividend date of Mar 28, you can sell covered calls on National Health Investor, Inc 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):
| National Health Investor, Inc (NHI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 76.99 | 85.33 | 81.22 | +1.26 | 278K | 22 | 3.4B |
NHI Dividend-Like Income Using Covered Calls
With NHI at 81.22, 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% | 2.44 | 0.7 |
| 5% | 4.06 | 1.1 |
| 10% | 8.12 | 2.2 |
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:
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| Top 10 Open Interest For Mar 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPX dividend | 6. | EWZ dividend | 1. | AMRN dividend | |
| 2. | EEM dividend | 7. | GE dividend | 2. | FIT dividend | |
| 3. | SPY dividend | 8. | LLY dividend | 3. | ASND dividend | |
| 4. | QQQ dividend | 9. | BAC dividend | 4. | IMGN dividend | |
| 5. | FXI dividend | 10. | GLD dividend | 5. | OSTK dividend | |
Want more examples? NHC Dividend | NHTC Dividend
