NI Dividend

Although NI has a dividend of 0.27 with an ex-dividend date of Oct 31, you can sell covered calls on NiSource Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

NiSource Inc (NI)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
33.42	34.76	34.12	-0.06	2.2M	21	15B

NI Dividend-Like Income Using Covered Calls

With NI at 34.12, 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%	1.02	0.3
5%	1.71	0.5
10%	3.41	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 NI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 15	35.00	0.40	51	0.8	0.24 (0.7%)
Oct 18	35.00	0.10	23	0.4	0.24 (0.7%)

5% Yield On NI Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Nov 15	35.00	0.40	51	0.8	0.24 (0.7%)
Jan 17	35.00	0.85	114	0.7	0.24 (0.7%)

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

Top 10 Open Interest For Oct 18 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	SLV dividend	1.	DJT dividend
2.	IWM dividend	7.	EEM dividend	2.	APLD dividend
3.	SPY dividend	8.	HYG dividend	3.	CPRI dividend
4.	FXI dividend	9.	TLT dividend	4.	ASTS dividend
5.	QQQ dividend	10.	GLD dividend	5.	IONQ dividend

Want more examples? NHTC Dividend | NICE Dividend