NRP Dividend

Although NRP has a dividend of 0.75 with an ex-dividend date of Nov 19, 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 Fri 10:10 AM ET):

Natural Resource Partners LP Limited Partnership (NRP)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
108.00	110.48	109.24	+1.76	10K	8.7	1.4B

NRP Dividend-Like Income Using Covered Calls

With NRP at 109.24, 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%	3.28	0.9
5%	5.46	1.5
10%	10.92	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
Dec 20	110.00	1.50	36	2.8	0.00 (0.0%)
Jan 17	110.00	3.70	64	5.0	0.00 (0.0%)

5% Yield On NRP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	110.00	1.50	36	2.8	0.00 (0.0%)
Jan 17	110.00	3.70	64	5.0	0.00 (0.0%)

10% Yield On NRP Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	110.00	3.70	64	5.0	0.00 (0.0%)
Apr 17	110.00	6.50	154	3.9	0.00 (0.0%)

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Top 10 Open Interest For Dec 20 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	QQQ dividend	1.	BE dividend
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Want more examples? NRG Dividend | NRT Dividend