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 Tue 3:55 PM ET):
| NovoCure Limited - Ordinary Shares (NVCR) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 23.73 | 23.77 | 23.76 | +0.01 | 740K | - | 2.6B |
NVCR Dividend-Like Income Using Covered Calls
With NVCR at 23.76, 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% | 0.71 | 0.2 |
| 5% | 1.19 | 0.3 |
| 10% | 2.38 | 0.7 |
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 | |
| Sep 19 | 24.00 | 4.00 | 228 | 1.8 | 0.23 (1.0%) | |
| Dec 19 | 25.00 | 4.90 | 319 | 1.5 | 1.23 (5.2%) | |
| 5% Yield On NVCR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 24.00 | 4.00 | 228 | 1.8 | 0.23 (1.0%) | |
| Dec 19 | 25.00 | 4.90 | 319 | 1.5 | 1.23 (5.2%) | |
| 10% Yield On NVCR Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 24.00 | 4.00 | 228 | 1.8 | 0.23 (1.0%) | |
| Dec 19 | 25.00 | 4.90 | 319 | 1.5 | 1.23 (5.2%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | FXI dividend | 1. | LUMN dividend | |
| 2. | TLT dividend | 7. | SLV dividend | 2. | AFRM dividend | |
| 3. | SPY dividend | 8. | QQQ dividend | 3. | SYM dividend | |
| 4. | IWM dividend | 9. | KWEB dividend | 4. | BILL dividend | |
| 5. | TSLA dividend | 10. | GLD dividend | 5. | ENPH dividend | |
Want more examples? NVAX Dividend | NVDA Dividend
