NHI Dividend Type Payments
Although NHI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on National Health Investors, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
National Health Investors, Inc. (NHI) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
59.39 | 64.00 | 62.61 | -0.24 | 114K | 20 | 2.7B |
NHI Dividend-Like Income Using Covered Calls
With NHI at 62.61, 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% | 1.88 | 0.5 |
5% | 3.13 | 0.9 |
10% | 6.26 | 1.7 |
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 NHI Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 21 | 65.00 | 0.90 | 58 | 1.6 | 1.00 (1.6%) | |
Jul 19 | 65.00 | 1.20 | 86 | 1.4 | 1.00 (1.6%) |
5% Yield On NHI Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jun 21 | 65.00 | 0.90 | 58 | 1.6 | 1.00 (1.6%) | |
Jul 19 | 65.00 | 1.20 | 86 | 1.4 | 1.00 (1.6%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | QQQ dividend | 6. | EEM dividend | 1. | WOLF dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | FSLY dividend | |
3. | IWM dividend | 8. | SLV dividend | 3. | INTC dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | GRPN dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | PENN dividend |
Want more examples? NHC Dividend | NHTC Dividend