NRP Dividend Type Payments
Although NRP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Natural Resource Partners LP Limited Partnership 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):
| Natural Resource Partners LP Limited Partnership (NRP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 95.94 | 102.49 | 99.95 | -0.58 | 10K | 7.6 | 1.3B |
NRP Dividend-Like Income Using Covered Calls
With NRP at 99.95, 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% | 3.00 | 0.8 |
| 5% | 5.00 | 1.4 |
| 10% | 10.00 | 2.7 |
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 NRP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 110.00 | 1.05 | 50 | 2.1 | 7.51 (7.5%) | |
| Oct 18 | 102.56 | 0.25 | 22 | 1.1 | 0.07 (0.1%) | |
| 5% Yield On NRP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 15 | 110.00 | 1.05 | 50 | 2.1 | 7.51 (7.5%) | |
| Jan 17 | 105.00 | 2.60 | 113 | 2.3 | 2.51 (2.5%) | |
| 10% Yield On NRP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 105.00 | 5.60 | 203 | 2.8 | 2.51 (2.5%) | |
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| Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | ASTS dividend | |
| 2. | IWM dividend | 7. | SLV dividend | 2. | APLD dividend | |
| 3. | FXI dividend | 8. | HYG dividend | 3. | HUT dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | CLSK dividend | |
| 5. | EEM dividend | 10. | GLD dividend | 5. | CPRI dividend | |
Want more examples? NRG Dividend | NRT Dividend
