EVH Dividend Type Payments
Although EVH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Evolent Health, 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):
| Evolent Health, Inc Class A (EVH) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 12.30 |
12.85 |
12.54 |
-0.06 |
2.1M |
- |
1.5B |
EVH Dividend-Like Income Using Covered Calls
With EVH at 12.54, 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% |
0.38 |
0.1 |
| 5% |
0.63 |
0.2 |
| 10% |
1.25 |
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 EVH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
15.00 |
0.20 |
8 |
2.5 |
2.15 (17.1%) |
| Dec 19 |
15.00 |
1.00 |
344 |
0.3 |
2.15 (17.1%) |
| 5% Yield On EVH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
15.00 |
0.20 |
8 |
2.5 |
2.15 (17.1%) |
| Dec 19 |
15.00 |
1.00 |
344 |
0.3 |
2.15 (17.1%) |
| 10% Yield On EVH Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
15.00 |
0.20 |
8 |
2.5 |
2.15 (17.1%) |
| Feb 21 |
15.00 |
0.30 |
43 |
0.7 |
2.15 (17.1%) |
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