NWPX Dividend Type Payments

NORTHWEST PIPE CO dividend

Although NWPX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NORTHWEST PIPE CO 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):

NORTHWEST PIPE CO (NWPX)
Bid Ask Last Change Volume P/E Market Cap
17.45 17.80 17.45 -0.07 15K - 0.2B

NWPX Dividend-Like Income Using Covered Calls

With NWPX at 17.45, 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% 0.52 0.1
5% 0.87 0.2
10% 1.75 0.5

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 NWPX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 20.00 0.10 36 0.3 2.20 (12.6%)
Dec 21 22.50 0.25 127 0.2 4.70 (26.9%)
5% Yield On NWPX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 20.00 0.10 36 0.3 2.20 (12.6%)
Mar 15 20.00 1.00 211 0.5 2.20 (12.6%)

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Want more examples? NWN Dividend | NWS Dividend