NTRS Dividend Type Payments

Northern Trust Corporation dividend

Although NTRS has no upcoming (meaning, Board-approved and announced) dividends, 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 Mon 4:16 PM ET):

Northern Trust Corporation (NTRS)
Bid Ask Last Change Volume P/E Market Cap
88.98 90.64 90.03 -0.04 975K 12 18B

NTRS Dividend-Like Income Using Covered Calls

With NTRS at 90.03, 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% 2.70 0.7
5% 4.50 1.2
10% 9.00 2.5

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
Nov 15 100.00 0.80 47 1.7 9.36 (10.4%)
Oct 18 92.50 0.80 19 4.2 1.86 (2.1%)
5% Yield On NTRS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 100.00 0.80 47 1.7 9.36 (10.4%)
Oct 18 92.50 0.80 19 4.2 1.86 (2.1%)
10% Yield On NTRS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 15 92.50 2.95 47 6.3 1.86 (2.1%)
Oct 18 92.50 0.80 19 4.2 1.86 (2.1%)

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Want more examples? NTRA Dividend | NTSX Dividend