NLY Dividend Type Payments

Annaly Capital Management Inc. dividend

Although NLY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Annaly Capital Management Inc. 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):

Annaly Capital Management Inc. (NLY)
Bid Ask Last Change Volume P/E Market Cap
22.77 22.84 22.82 +0.01 6.8M - 16B

NLY Dividend-Like Income Using Covered Calls

With NLY at 22.82, 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% 0.68 0.2
5% 1.14 0.3
10% 2.28 0.6

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 NLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 12 23.00 0.12 10 1.2 0.16 (0.7%)
Dec 19 23.00 0.21 17 1.2 0.16 (0.7%)
5% Yield On NLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 12 23.00 0.12 10 1.2 0.16 (0.7%)
Dec 19 23.00 0.21 17 1.2 0.16 (0.7%)
10% Yield On NLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 12 23.00 0.12 10 1.2 0.16 (0.7%)
Dec 19 23.00 0.21 17 1.2 0.16 (0.7%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Dec 19 Expiration     Top 5 High Yield
1.NVDA dividend 6.EEM dividend   1.SNOW dividend
2.SPY dividend 7.GLD dividend   2.RZLT dividend
3.IWM dividend 8.TLT dividend   3.HUT dividend
4.QQQ dividend 9.SLV dividend   4.IOT dividend
5.IBIT dividend 10.FXI dividend   5.HPE dividend

Want more examples? NLR Dividend | NMBL Dividend