NRP Dividend Type Payments
Although NRP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Natural Resource Partners LP Limited Partnership to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Natural Resource Partners LP Limited Partnership (NRP) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 105.00 | 114.83 | 109.00 | +1.67 | 22K | 8.7 | 1.4B |
NRP Dividend-Like Income Using Covered Calls
With NRP at 109.00, 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% | 3.27 | 0.9 |
| 5% | 5.45 | 1.5 |
| 10% | 10.90 | 3.0 |
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 NRP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 120.00 | 0.05 | 3 | 1.7 | 5.17 (4.7%) | |
| Apr 17 | 115.00 | 2.80 | 93 | 3.0 | 0.17 (0.2%) | |
| 5% Yield On NRP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 120.00 | 0.05 | 3 | 1.7 | 5.17 (4.7%) | |
| Apr 17 | 115.00 | 2.80 | 93 | 3.0 | 0.17 (0.2%) | |
| 10% Yield On NRP Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Apr 17 | 115.00 | 2.80 | 93 | 3.0 | 0.17 (0.2%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | RCAT dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | XP dividend | |
| 3. | AAPL dividend | 8. | XLF dividend | 3. | RXRX dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | RGTI dividend | |
| 5. | EEM dividend | 10. | IWM dividend | 5. | DNA dividend | |
Want more examples? NRG Dividend | NRT Dividend
