NFE Dividend Type Payments
Although NFE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on New Fortress Energy Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| New Fortress Energy Inc. - Class A (NFE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 9.15 |
9.21 |
9.26 |
+0.76 |
7.0M |
- |
2.3B |
NFE Dividend-Like Income Using Covered Calls
With NFE at 9.26, 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% |
0.28 |
0.1 |
| 5% |
0.46 |
0.1 |
| 10% |
0.93 |
0.3 |
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 NFE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
10.00 |
0.65 |
22 |
3.0 |
0.79 (8.5%) |
| Apr 11 |
10.00 |
0.70 |
29 |
2.4 |
0.79 (8.5%) |
| 5% Yield On NFE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
10.00 |
0.65 |
22 |
3.0 |
0.79 (8.5%) |
| Apr 11 |
10.00 |
0.70 |
29 |
2.4 |
0.79 (8.5%) |
| 10% Yield On NFE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
10.00 |
0.65 |
22 |
3.0 |
0.79 (8.5%) |
| Apr 11 |
10.00 |
0.70 |
29 |
2.4 |
0.79 (8.5%) |
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