NYT Dividend

New York Times dividend

Although NYT has a dividend of 0.05 with an ex-dividend date of Apr 2, you can sell covered calls on New York Times 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):

New York Times (NYT)
Bid Ask Last Change Volume P/E Market Cap
32.11 32.75 32.60 -1.12 2.1M 45 5.6B

NYT Dividend-Like Income Using Covered Calls

With NYT at 32.60, 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% 0.98 0.3
5% 1.63 0.4
10% 3.26 0.9

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 NYT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 36.00 0.10 28 0.4 3.25 (10.0%)
May 17 38.00 0.25 57 0.4 5.25 (16.1%)
5% Yield On NYT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 35.00 0.20 28 0.7 2.25 (6.9%)
May 17 37.00 0.35 57 0.6 4.25 (13.0%)
10% Yield On NYT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 34.00 0.45 28 1.6 1.25 (3.8%)
May 17 36.00 0.55 57 1.0 3.25 (10.0%)

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