NMM Dividend Type Payments
Although NMM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Navios Maritime Partners LP Common Units Representing Limited Partner In to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Navios Maritime Partners LP Common Units Representing Limited Partner In (NMM) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 50.40 | 53.55 | 50.53 | +0.04 | 92K | 5.0 | 0.2B |
NMM Dividend-Like Income Using Covered Calls
With NMM at 50.53, 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% | 1.52 | 0.4 |
| 5% | 2.53 | 0.7 |
| 10% | 5.05 | 1.4 |
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 NMM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 55.00 | 0.40 | 31 | 1.3 | 1.45 (2.9%) | |
| Mar 20 | 55.00 | 1.75 | 94 | 1.9 | 1.45 (2.9%) | |
| 5% Yield On NMM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 55.00 | 0.40 | 31 | 1.3 | 1.45 (2.9%) | |
| Mar 20 | 55.00 | 1.75 | 94 | 1.9 | 1.45 (2.9%) | |
| 10% Yield On NMM Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 20 | 55.00 | 1.75 | 94 | 1.9 | 1.45 (2.9%) | |
| Jan 15 | 55.00 | 5.70 | 395 | 1.4 | 1.45 (2.9%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | OMER dividend | |
| 2. | SPY dividend | 7. | NFLX dividend | 2. | TMC dividend | |
| 3. | IBIT dividend | 8. | SLV dividend | 3. | TLRY dividend | |
| 4. | QQQ dividend | 9. | XLF dividend | 4. | BMNR dividend | |
| 5. | TLT dividend | 10. | AMZN dividend | 5. | ALT dividend | |
Want more examples? NMIH Dividend | NMR Dividend
