NWSA Dividend
Although NWSA has a dividend of 0.10 with an ex-dividend date of Sep 10, you can sell covered calls on News Corporation - Class A 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):
| News Corporation - Class A (NWSA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 25.17 | 31.00 | 29.47 | -0.33 | 7.6M | 14 | 17B |
NWSA Dividend-Like Income Using Covered Calls
With NWSA at 29.47, 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% | 0.88 | 0.2 |
| 5% | 1.47 | 0.4 |
| 10% | 2.95 | 0.8 |
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 Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | ATYR dividend | |
| 2. | PCG dividend | 7. | FXI dividend | 2. | IREN dividend | |
| 3. | IWM dividend | 8. | QQQ dividend | 3. | KSS dividend | |
| 4. | EEM dividend | 9. | IBIT dividend | 4. | VKTX dividend | |
| 5. | SPY dividend | 10. | KWEB dividend | 5. | BBAI dividend | |
Want more examples? NWS Dividend | NX Dividend
