NX Dividend

Although NX has a dividend of 0.08 with an ex-dividend date of Jun 16, you can sell covered calls on Quanex Building Products 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):

Quanex Building Products Corporation (NX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
16.09	17.32	16.30	-0.43	349K	43	0.8B

NX Dividend-Like Income Using Covered Calls

With NX at 16.30, 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%	0.49	0.1
5%	0.82	0.2
10%	1.63	0.4

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 NX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	17.50	0.50	110	0.5	0.18 (1.1%)
Dec 19	17.50	1.50	201	0.7	0.18 (1.1%)

5% Yield On NX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	17.50	0.50	110	0.5	0.18 (1.1%)
Dec 19	17.50	1.50	201	0.7	0.18 (1.1%)

10% Yield On NX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	17.50	0.50	110	0.5	0.18 (1.1%)
Dec 19	17.50	1.50	201	0.7	0.18 (1.1%)

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Top 10 Open Interest For Jun 20 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	IWM dividend	1.	MDB dividend
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Want more examples? NWSA Dividend | NXPI Dividend