NGG Dividend Type Payments
Although NGG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on National Grid Transco, PLC National Grid PLC (NEW) American Depositary S 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):
| National Grid Transco, PLC National Grid PLC (NEW) American Depositary S (NGG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 63.34 | 69.08 | 68.06 | +2.47 | 927K | - | 33B |
NGG Dividend-Like Income Using Covered Calls
With NGG at 68.06, 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% | 2.04 | 0.6 |
| 5% | 3.40 | 0.9 |
| 10% | 6.81 | 1.9 |
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 NGG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 70.00 | 1.50 | 36 | 4.2 | 0.92 (1.4%) | |
| Apr 17 | 70.00 | 0.20 | 7 | 2.9 | 0.92 (1.4%) | |
| 5% Yield On NGG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 70.00 | 1.50 | 36 | 4.2 | 0.92 (1.4%) | |
| Apr 17 | 70.00 | 0.20 | 7 | 2.9 | 0.92 (1.4%) | |
| 10% Yield On NGG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 70.00 | 1.50 | 36 | 4.2 | 0.92 (1.4%) | |
| Apr 17 | 70.00 | 0.20 | 7 | 2.9 | 0.92 (1.4%) | |
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| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | IWM dividend | 1. | CLF dividend | |
| 2. | NVDA dividend | 7. | NIO dividend | 2. | CRMD dividend | |
| 3. | QQQ dividend | 8. | TSLA dividend | 3. | AEVA dividend | |
| 4. | SLV dividend | 9. | EEM dividend | 4. | ROKU dividend | |
| 5. | ASHR dividend | 10. | TLT dividend | 5. | BTU dividend | |
Want more examples? NGD Dividend | NGL Dividend
