NSSC Dividend Type Payments
Although NSSC has no upcoming (meaning, Board-approved and announced) dividends, 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 Wed 12:20 PM ET):
| NAPCO Security Technologies, Inc. (NSSC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 34.64 | 34.73 | 34.71 | +0.87 | 49K | 25 | 1.2B |
NSSC Dividend-Like Income Using Covered Calls
With NSSC at 34.71, 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% | 1.04 | 0.3 |
| 5% | 1.74 | 0.5 |
| 10% | 3.47 | 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 | |
| Jan 17 | 35.00 | 0.25 | 3 | 8.3 | 0.27 (0.8%) | |
| Jun 20 | 35.00 | 3.20 | 157 | 2.0 | 0.27 (0.8%) | |
| 5% Yield On NSSC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 35.00 | 0.25 | 3 | 8.3 | 0.27 (0.8%) | |
| Jun 20 | 35.00 | 3.20 | 157 | 2.0 | 0.27 (0.8%) | |
| 10% Yield On NSSC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 17 | 35.00 | 0.25 | 3 | 8.3 | 0.27 (0.8%) | |
| Jun 20 | 35.00 | 3.20 | 157 | 2.0 | 0.27 (0.8%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | DNA dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | RXRX dividend | |
| 3. | AAPL dividend | 8. | XLF dividend | 3. | RGTI dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | ARDX dividend | |
| 5. | EEM dividend | 10. | IWM dividend | 5. | RUM dividend | |
Want more examples? NSP Dividend | NTAP Dividend
