NAVI Dividend Type Payments
Although NAVI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Navient Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 10:35 AM ET):
| Navient Corporation (NAVI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 12.93 | 12.95 | 12.94 | +0.02 | 31K | 40 | 1.3B |
NAVI Dividend-Like Income Using Covered Calls
With NAVI at 12.94, 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% | 0.39 | 0.1 |
| 5% | 0.65 | 0.2 |
| 10% | 1.29 | 0.4 |
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 NAVI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 15.00 | 0.10 | 81 | 0.1 | 2.05 (15.8%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | TLT dividend | 1. | DNUT dividend | |
| 2. | KVUE dividend | 7. | INTC dividend | 2. | UPST dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | ALGN dividend | |
| 4. | SLV dividend | 9. | HYG dividend | 4. | HIVE dividend | |
| 5. | GLD dividend | 10. | QQQ dividend | 5. | OSCR dividend | |
Want more examples? NATR Dividend | NBHC Dividend
