GMAB Dividend Type Payments
Although GMAB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Genmab A/S - American Depositary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Genmab A/S - American Depositary Shares (GMAB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 28.13 |
29.12 |
28.71 |
+0.10 |
2.0M |
- |
1.1B |
GMAB Dividend-Like Income Using Covered Calls
With GMAB at 28.71, 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% |
0.86 |
0.2 |
| 5% |
1.44 |
0.4 |
| 10% |
2.87 |
0.8 |
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 GMAB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
30.00 |
0.45 |
19 |
2.4 |
0.88 (3.1%) |
| May 15 |
30.00 |
1.55 |
194 |
0.8 |
0.88 (3.1%) |
| 5% Yield On GMAB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
30.00 |
0.45 |
19 |
2.4 |
0.88 (3.1%) |
| May 15 |
30.00 |
1.55 |
194 |
0.8 |
0.88 (3.1%) |
| 10% Yield On GMAB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
30.00 |
0.45 |
19 |
2.4 |
0.88 (3.1%) |
| May 15 |
30.00 |
1.55 |
194 |
0.8 |
0.88 (3.1%) |
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