NOVT Dividend Type Payments
Although NOVT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Novanta Inc. - Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Novanta Inc. - Common Shares (NOVT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 161.16 |
178.58 |
169.71 |
-0.46 |
273K |
84 |
6.1B |
NOVT Dividend-Like Income Using Covered Calls
With NOVT at 169.71, 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% |
5.09 |
1.4 |
| 5% |
8.49 |
2.3 |
| 10% |
16.97 |
4.6 |
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 NOVT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
180.00 |
11.20 |
184 |
6.1 |
1.42 (0.8%) |
| Jan 17 |
180.00 |
1.00 |
65 |
1.5 |
1.42 (0.8%) |
| 5% Yield On NOVT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
180.00 |
11.20 |
184 |
6.1 |
1.42 (0.8%) |
| Feb 21 |
180.00 |
3.00 |
100 |
3.0 |
1.42 (0.8%) |
| 10% Yield On NOVT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
180.00 |
11.20 |
184 |
6.1 |
1.42 (0.8%) |
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