NJR Dividend
Although NJR has a dividend of 0.45 with an ex-dividend date of Jun 10, you can sell covered calls on NewJersey Resources Corporation 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):
| NewJersey Resources Corporation (NJR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 47.12 | 51.29 | 47.28 | -0.70 | 633K | 12 | 4.8B |
NJR Dividend-Like Income Using Covered Calls
With NJR at 47.28, 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% | 1.42 | 0.4 |
| 5% | 2.36 | 0.6 |
| 10% | 4.73 | 1.3 |
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 May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | ALT dividend | |
| 2. | SPY dividend | 7. | TSLA dividend | 2. | VALE dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | AUPH dividend | |
| 4. | QQQ dividend | 9. | GLD dividend | 4. | HE dividend | |
| 5. | IWM dividend | 10. | INTC dividend | 5. | NMAX dividend | |
Want more examples? NIU Dividend | NKE Dividend
