NWBI Dividend
Although NWBI has a dividend of 0.20 with an ex-dividend date of May 1, you can sell covered calls on Northwest Bancshares, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Northwest Bancshares, Inc. (NWBI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 10.75 | 11.62 | 11.00 | -0.06 | 1.1M | 10 | 1.4B |
NWBI Dividend-Like Income Using Covered Calls
With NWBI at 11.00, 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% | 0.33 | 0.1 |
| 5% | 0.55 | 0.2 |
| 10% | 1.10 | 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 NWBI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 12.50 | 0.20 | 207 | 0.1 | 0.88 (8.0%) | |
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | KWEB dividend | 1. | CIFR dividend | |
| 2. | HYG dividend | 7. | EEM dividend | 2. | FSLY dividend | |
| 3. | SPY dividend | 8. | TSLA dividend | 3. | ENPH dividend | |
| 4. | QQQ dividend | 9. | SLV dividend | 4. | CGC dividend | |
| 5. | FXI dividend | 10. | EWZ dividend | 5. | SNAP dividend | |
Want more examples? NVT Dividend | NWE Dividend
