NMFC Dividend Type Payments
Although NMFC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on New Mountain Finance Corporation 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):
| New Mountain Finance Corporation (NMFC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 9.24 | 9.54 | 9.24 | +0.08 | 504K | 12 | 1.0B |
NMFC Dividend-Like Income Using Covered Calls
With NMFC at 9.24, 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% | 0.28 | 0.1 |
| 5% | 0.46 | 0.1 |
| 10% | 0.92 | 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 NMFC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 10.00 | 0.05 | 64 | 0.1 | 0.46 (5.0%) | |
| Apr 17 | 10.00 | 0.20 | 183 | 0.1 | 0.46 (5.0%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | GLD dividend | 1. | CIFR dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | INBX dividend | |
| 3. | NVDA dividend | 8. | EEM dividend | 3. | USAR dividend | |
| 4. | SLV dividend | 9. | INTC dividend | 4. | BHVN dividend | |
| 5. | HYG dividend | 10. | QQQ dividend | 5. | IREN dividend | |
Want more examples? NLY Dividend | NMIH Dividend
