NRP Dividend Type Payments
Although NRP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Natural Resource Partners LP Limited Partnership 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):
| Natural Resource Partners LP Limited Partnership (NRP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 102.50 | 106.00 | 105.17 | -0.08 | 2K | 10 | 1.4B |
NRP Dividend-Like Income Using Covered Calls
With NRP at 105.17, 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% | 3.16 | 0.9 |
| 5% | 5.26 | 1.4 |
| 10% | 10.52 | 2.9 |
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 NRP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 110.00 | 0.20 | 22 | 0.9 | 4.00 (3.8%) | |
| Apr 17 | 110.00 | 4.40 | 141 | 3.1 | 4.00 (3.8%) | |
| 5% Yield On NRP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 110.00 | 4.40 | 141 | 3.1 | 4.00 (3.8%) | |
| Jul 17 | 110.00 | 6.30 | 232 | 2.7 | 4.00 (3.8%) | |
| 10% Yield On NRP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 110.00 | 4.40 | 141 | 3.1 | 4.00 (3.8%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | RZLT dividend | |
| 2. | IWM dividend | 7. | GLD dividend | 2. | IMNM dividend | |
| 3. | SPY dividend | 8. | SLV dividend | 3. | VTYX dividend | |
| 4. | QQQ dividend | 9. | TLT dividend | 4. | PATH dividend | |
| 5. | IBIT dividend | 10. | FXI dividend | 5. | IREN dividend | |
Want more examples? NRGU Dividend | NRT Dividend
