NEU Dividend Type Payments

NewMarket Corp dividend

Although NEU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NewMarket Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

NewMarket Corp (NEU)
Bid Ask Last Change Volume P/E Market Cap
681.16 744.22 710.84 -9.84 133K 15 6.8B

NEU Dividend-Like Income Using Covered Calls

With NEU at 710.84, 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% 21.33 5.8
5% 35.54 9.7
10% 71.08 19.5

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 NEU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 745.00 33.30 157 21.2 0.78 (0.1%)
Dec 18 745.00 64.00 340 18.8 0.78 (0.1%)
5% Yield On NEU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 745.00 33.30 157 21.2 0.78 (0.1%)
Dec 18 745.00 64.00 340 18.8 0.78 (0.1%)
10% Yield On NEU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 18 745.00 33.30 157 21.2 0.78 (0.1%)
Mar 20 745.00 13.70 67 20.4 0.78 (0.1%)

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