NMRK Dividend
Although NMRK has a dividend of 0.03 with an ex-dividend date of May 14, you can sell covered calls on Newmark Group, Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:35 PM ET):
| Newmark Group, Inc. - Class A (NMRK) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 11.92 |
11.93 |
11.93 |
0.00 |
170K |
35 |
2.2B |
NMRK Dividend-Like Income Using Covered Calls
With NMRK at 11.93, 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% |
0.36 |
0.1 |
| 5% |
0.60 |
0.2 |
| 10% |
1.19 |
0.3 |
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:
| 3% Yield On NMRK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
12.50 |
0.85 |
130 |
0.7 |
0.57 (4.8%) |
| Dec 19 |
12.50 |
1.20 |
221 |
0.5 |
0.57 (4.8%) |
| 5% Yield On NMRK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
12.50 |
0.85 |
130 |
0.7 |
0.57 (4.8%) |
| Dec 19 |
12.50 |
1.20 |
221 |
0.5 |
0.57 (4.8%) |
| 10% Yield On NMRK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 19 |
12.50 |
0.85 |
130 |
0.7 |
0.57 (4.8%) |
| Dec 19 |
12.50 |
1.20 |
221 |
0.5 |
0.57 (4.8%) |
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