NSSC Dividend

Although NSSC has a dividend of 0.13 with an ex-dividend date of Dec 12, you can sell covered calls on NAPCO Security Technologies, Inc. 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):

NAPCO Security Technologies, Inc. (NSSC)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
32.88	37.51	35.96	-0.95	210K	27	1.4B

NSSC Dividend-Like Income Using Covered Calls

With NSSC at 35.96, 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%	1.08	0.3
5%	1.80	0.5
10%	3.60	1.0

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 NSSC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	40.00	0.40	36	1.1	2.49 (6.9%)
Jun 20	40.00	2.40	218	1.1	2.49 (6.9%)

5% Yield On NSSC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	40.00	0.40	36	1.1	2.49 (6.9%)
Jun 20	40.00	2.40	218	1.1	2.49 (6.9%)

10% Yield On NSSC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	40.00	0.40	36	1.1	2.49 (6.9%)
Jun 20	40.00	2.40	218	1.1	2.49 (6.9%)

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Top 10 Open Interest For Dec 20 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	QQQ dividend	1.	SAVA dividend
2.	SPY dividend	7.	XLF dividend	2.	RKLB dividend
3.	EEM dividend	8.	KWEB dividend	3.	LUNR dividend
4.	FXI dividend	9.	TLT dividend	4.	NMRA dividend
5.	IWM dividend	10.	KRE dividend	5.	CRVS dividend

Want more examples? NSP Dividend | NTAP Dividend