NVCR Dividend Type Payments
Although NVCR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NovoCure Limited - Ordinary Shares 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):
| NovoCure Limited - Ordinary Shares (NVCR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 19.80 | 20.04 | 20.04 | +0.35 | 864K | - | 2.1B |
NVCR Dividend-Like Income Using Covered Calls
With NVCR at 20.04, 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% | 0.60 | 0.2 |
| 5% | 1.00 | 0.3 |
| 10% | 2.00 | 0.5 |
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 NVCR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 20.00 | 1.65 | 22 | 7.3 | 0.00 (0.0%) | |
| Jan 17 | 20.00 | 2.40 | 50 | 4.7 | 0.00 (0.0%) | |
| 5% Yield On NVCR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 20.00 | 1.65 | 22 | 7.3 | 0.00 (0.0%) | |
| Jan 17 | 20.00 | 2.40 | 50 | 4.7 | 0.00 (0.0%) | |
| 10% Yield On NVCR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 20.00 | 1.65 | 22 | 7.3 | 0.00 (0.0%) | |
| Jan 17 | 20.00 | 2.40 | 50 | 4.7 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | ACHR dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | CRVS dividend | |
| 3. | XLF dividend | 8. | TLT dividend | 3. | IONQ dividend | |
| 4. | EEM dividend | 9. | KWEB dividend | 4. | PATH dividend | |
| 5. | FXI dividend | 10. | AAPL dividend | 5. | IOT dividend | |
Want more examples? NVAX Dividend | NVDA Dividend
