NRT Dividend Type Payments
Although NRT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on North European Oil Royality Trust to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| North European Oil Royality Trust (NRT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 4.70 | 5.00 | 4.96 | +0.20 | 14K | 8.1 | 0.0B |
NRT Dividend-Like Income Using Covered Calls
With NRT at 4.96, 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% | 0.15 | 0.0 |
| 5% | 0.25 | 0.1 |
| 10% | 0.50 | 0.1 |
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 Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | SPY dividend | 1. | BKSY dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | WAL dividend | |
| 3. | GLD dividend | 8. | AMZN dividend | 3. | CELC dividend | |
| 4. | IWM dividend | 9. | AAPL dividend | 4. | MNMD dividend | |
| 5. | IBIT dividend | 10. | SMCI dividend | 5. | REPL dividend | |
Want more examples? NRP Dividend | NSA Dividend
