NMFC Dividend
Although NMFC has a dividend of 0.32 with an ex-dividend date of Dec 17, 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 |
| 9.33 | 9.46 | 9.43 | -0.04 | 383K | 15 | 1.0B |
NMFC Dividend-Like Income Using Covered Calls
With NMFC at 9.43, 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% | 0.47 | 0.1 |
| 10% | 0.94 | 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 | |
| Apr 17 | 10.00 | 0.20 | 155 | 0.1 | 0.54 (5.7%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | SPY dividend | 1. | IMNM dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | RZLT dividend | |
| 3. | KVUE dividend | 8. | GLD dividend | 3. | AGIO dividend | |
| 4. | SLV dividend | 9. | QQQ dividend | 4. | VTYX dividend | |
| 5. | TSLA dividend | 10. | ASST dividend | 5. | TMC dividend | |
Want more examples? NMBL Dividend | NMIH Dividend
