NMIH Dividend Type Payments
Although NMIH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NMI Holdings 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):
| NMI Holdings Inc (NMIH) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 39.10 | 42.35 | 40.85 | -0.07 | 333K | 10 | 3.3B |
NMIH Dividend-Like Income Using Covered Calls
With NMIH at 40.85, 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% | 1.23 | 0.3 |
| 5% | 2.04 | 0.6 |
| 10% | 4.09 | 1.1 |
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:
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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? NMFC Dividend | NMM Dividend
