NTRS Dividend

Northern Trust Corporation dividend

Although NTRS has a dividend of 0.80 with an ex-dividend date of Dec 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 Tue 3:30 PM ET):

Northern Trust Corporation (NTRS)
Bid Ask Last Change Volume P/E Market Cap
127.36 127.52 127.40 +1.20 647K 15 24B

NTRS Dividend-Like Income Using Covered Calls

With NTRS at 127.40, 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% 3.82 1.0
5% 6.37 1.7
10% 12.74 3.5

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
Dec 19 130.00 3.40 53 6.4 2.48 (1.9%)
Nov 21 130.00 2.40 25 9.6 2.48 (1.9%)
5% Yield On NTRS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 130.00 3.40 53 6.4 2.48 (1.9%)
Nov 21 130.00 2.40 25 9.6 2.48 (1.9%)
10% Yield On NTRS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 130.00 3.40 53 6.4 2.48 (1.9%)
Nov 21 130.00 2.40 25 9.6 2.48 (1.9%)

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Want more examples? NTRA Dividend | NTSX Dividend