NG Dividend Type Payments
Although NG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Novagold Resources Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:40 AM ET):
| Novagold Resources Inc. (NG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 8.14 | 8.15 | 8.14 | +0.01 | 755K | - | 3.3B |
NG Dividend-Like Income Using Covered Calls
With NG at 8.14, 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% | 0.24 | 0.1 |
| 5% | 0.41 | 0.1 |
| 10% | 0.81 | 0.2 |
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 NG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 10.00 | 0.25 | 53 | 0.5 | 1.85 (22.7%) | |
| Nov 21 | 10.00 | 0.10 | 25 | 0.4 | 1.85 (22.7%) | |
| 5% Yield On NG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 10.00 | 0.25 | 53 | 0.5 | 1.85 (22.7%) | |
| Nov 21 | 10.00 | 0.10 | 25 | 0.4 | 1.85 (22.7%) | |
| 10% Yield On NG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 10.00 | 0.25 | 53 | 0.5 | 1.85 (22.7%) | |
| Nov 21 | 10.00 | 0.10 | 25 | 0.4 | 1.85 (22.7%) | |
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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. | BHVN dividend | |
| 5. | GLD dividend | 10. | QQQ dividend | 5. | HIVE dividend | |
Want more examples? NFRA Dividend | NGD Dividend
