NVDA Dividend Type Payments
Although NVDA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NVIDIA Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
NVIDIA Corporation (NVDA) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
134.36 | 134.38 | 134.29 | -3.20 | 152M | 54 | 3,367B |
NVDA Dividend-Like Income Using Covered Calls
With NVDA at 134.29, 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% | 4.03 | 1.1 |
5% | 6.71 | 1.8 |
10% | 13.43 | 3.7 |
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 NVDA Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jan 3 | 134.00 | 2.10 | 4 | 43.0 | 0.00 (0.0%) | |
Feb 7 | 134.00 | 6.95 | 39 | 16.8 | 0.00 (0.0%) |
5% Yield On NVDA Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jan 3 | 134.00 | 2.10 | 4 | 43.0 | 0.00 (0.0%) | |
Feb 7 | 134.00 | 6.95 | 39 | 16.8 | 0.00 (0.0%) |
10% Yield On NVDA Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jan 3 | 134.00 | 2.10 | 4 | 43.0 | 0.00 (0.0%) | |
Feb 7 | 134.00 | 6.95 | 39 | 16.8 | 0.00 (0.0%) |
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Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | SPY dividend | 1. | NMRA dividend | |
2. | SLV dividend | 7. | XLF dividend | 2. | IONQ dividend | |
3. | EEM dividend | 8. | TSLA dividend | 3. | LUNR dividend | |
4. | AAPL dividend | 9. | IWM dividend | 4. | ACHR dividend | |
5. | INTC dividend | 10. | TLT dividend | 5. | RCAT dividend |
Want more examples? NVCR Dividend | NVEE Dividend