NOC Dividend Type Payments

NORTHROP GRUMMAN dividend

Although NOC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NORTHROP GRUMMAN to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:00 PM ET):

NORTHROP GRUMMAN (NOC)
Bid Ask Last Change Volume P/E Market Cap
312.06 312.34 312.20 +0.11 580K 24 54B

NOC Dividend-Like Income Using Covered Calls

With NOC at 312.20, 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% 9.37 2.6
5% 15.61 4.3
10% 31.22 8.6

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 NOC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 317.50 0.30 3 10.0 5.16 (1.7%)
Oct 26 337.50 0.40 10 4.0 25.16 (8.1%)
5% Yield On NOC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 317.50 0.30 3 10.0 5.16 (1.7%)
Oct 26 335.00 0.55 10 5.5 22.66 (7.3%)
10% Yield On NOC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 317.50 0.30 3 10.0 5.16 (1.7%)
Oct 26 330.00 1.05 10 10.5 17.66 (5.7%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.PBR dividend   1.LLNW dividend
2.SPX dividend 7.MU dividend   2.CRON dividend
3.QQQ dividend 8.FXI dividend   3.ERIC dividend
4.EEM dividend 9.IWM dividend   4.CLVS dividend
5.BAC dividend 10.AMD dividend   5.UVXY dividend

Want more examples? NOBL Dividend | NOG Dividend