NXRT Dividend
Although NXRT has a dividend of 0.51 with an ex-dividend date of Jun 16, you can sell covered calls on NexPoint Residential Trust, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 9:50 AM ET):
| NexPoint Residential Trust, Inc. (NXRT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 33.69 | 33.88 | 33.71 | +0.28 | 3K | - | 0.8B |
NXRT Dividend-Like Income Using Covered Calls
With NXRT at 33.71, 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% | 1.01 | 0.3 |
| 5% | 1.69 | 0.5 |
| 10% | 3.37 | 0.9 |
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:
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Jun 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | APLD dividend | |
| 2. | SPY dividend | 7. | EEM dividend | 2. | APP dividend | |
| 3. | SLV dividend | 8. | TSLA dividend | 3. | SMR dividend | |
| 4. | QQQ dividend | 9. | FXI dividend | 4. | HUT dividend | |
| 5. | GLD dividend | 10. | TLT dividend | 5. | NBIS dividend | |
Want more examples? NXPI Dividend | NXST Dividend
