NTRS Dividend
Although NTRS has a dividend of 0.80 with an ex-dividend date of Sep 5, you can sell covered calls on Northern Trust Corporation 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):
| Northern Trust Corporation (NTRS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 129.66 | 131.28 | 130.00 | -1.56 | 1.1M | 12 | 26B |
NTRS Dividend-Like Income Using Covered Calls
With NTRS at 130.00, 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% | 3.90 | 1.1 |
| 5% | 6.50 | 1.8 |
| 10% | 13.00 | 3.6 |
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 NTRS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 135.00 | 0.85 | 16 | 5.3 | 3.72 (2.9%) | |
| Oct 17 | 135.00 | 3.20 | 79 | 4.1 | 3.72 (2.9%) | |
| 5% Yield On NTRS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 135.00 | 0.85 | 16 | 5.3 | 3.72 (2.9%) | |
| Oct 17 | 135.00 | 3.20 | 79 | 4.1 | 3.72 (2.9%) | |
| 10% Yield On NTRS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 135.00 | 0.85 | 16 | 5.3 | 3.72 (2.9%) | |
| Oct 17 | 135.00 | 3.20 | 79 | 4.1 | 3.72 (2.9%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | COIN dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | LUMN dividend | |
| 3. | GLD dividend | 8. | QQQ dividend | 3. | BE dividend | |
| 4. | IWM dividend | 9. | AMZN dividend | 4. | AMZN dividend | |
| 5. | SPY dividend | 10. | INTC dividend | 5. | SMR dividend | |
Want more examples? NTRA Dividend | NTSX Dividend
