NG Dividend Type Payments

Novagold Resources Inc. dividend

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 Fri 4:16 PM ET):

Novagold Resources Inc. (NG)
Bid Ask Last Change Volume P/E Market Cap
9.80 10.30 10.00 -0.09 1.9M - 4.1B

NG Dividend-Like Income Using Covered Calls

With NG at 10.00, 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% 0.30 0.1
5% 0.50 0.1
10% 1.00 0.3

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
Jun 18 11.00 1.35 154 0.9 0.70 (7.0%)
Sep 18 11.00 1.45 246 0.6 0.70 (7.0%)
5% Yield On NG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 11.00 1.35 154 0.9 0.70 (7.0%)
Sep 18 11.00 1.45 246 0.6 0.70 (7.0%)
10% Yield On NG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 11.00 1.35 154 0.9 0.70 (7.0%)
Sep 18 11.00 1.45 246 0.6 0.70 (7.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Feb 20 Expiration     Top 5 High Yield
1.KWEB dividend 6.HYG dividend   1.OCUL dividend
2.SLV dividend 7.AAPL dividend   2.CRML dividend
3.NVDA dividend 8.INTC dividend   3.ONDS dividend
4.IBIT dividend 9.TLT dividend   4.CIFR dividend
5.CORZ dividend 10.QQQ dividend   5.EOSE dividend

Want more examples? NFRA Dividend | NGD Dividend