NLY Dividend
Although NLY has a dividend of 0.65 with an ex-dividend date of Sep 30, you can sell covered calls on Annaly Capital Management 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):
Annaly Capital Management Inc. (NLY) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
20.35 | 20.39 | 20.40 | +0.10 | 6.6M | - | 10B |
NLY Dividend-Like Income Using Covered Calls
With NLY at 20.40, 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% | 0.61 | 0.2 |
5% | 1.02 | 0.3 |
10% | 2.04 | 0.6 |
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 NLY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 21.00 | 0.07 | 37 | 0.2 | 0.61 (3.0%) | |
Oct 4 | 20.50 | 0.03 | 9 | 0.3 | 0.11 (0.5%) |
5% Yield On NLY Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Oct 4 | 20.50 | 0.03 | 9 | 0.3 | 0.11 (0.5%) | |
Oct 11 | 20.50 | 0.05 | 16 | 0.3 | 0.11 (0.5%) |
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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? NLR Dividend | NMFC Dividend