NVEE Dividend Type Payments

Although NVEE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NV 5 GLOBAL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:10 PM ET):

NV 5 GLOBAL (NVEE)
Bid Ask Last Change Volume P/E Market Cap
84.96 85.23 85.01 +2.45 31K 29 1.0B

NVEE Dividend-Like Income Using Covered Calls

With NVEE at 85.01, 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% 2.55 0.7
5% 4.25 1.2
10% 8.50 2.3

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 NVEE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 90.00 1.40 32 4.4 4.77 (5.6%)
Feb 15 95.00 2.10 123 1.7 9.77 (11.5%)
5% Yield On NVEE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 90.00 1.40 32 4.4 4.77 (5.6%)
Feb 15 95.00 2.10 123 1.7 9.77 (11.5%)
10% Yield On NVEE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 90.00 1.40 32 4.4 4.77 (5.6%)
Feb 15 90.00 3.80 123 3.1 4.77 (5.6%)

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Want more examples? NVDA Dividend | NVGS Dividend