NVMI Dividend Type Payments
Although NVMI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Nova Ltd. - Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:30 PM ET):
| Nova Ltd. - Ordinary Shares (NVMI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 205.35 | 205.98 | 205.50 | +7.85 | 121K | 37 | 5.7B |
NVMI Dividend-Like Income Using Covered Calls
With NVMI at 205.50, 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% | 6.17 | 1.7 |
| 5% | 10.28 | 2.8 |
| 10% | 20.55 | 5.6 |
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 NVMI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 210.00 | 0.90 | 3 | 30.0 | 4.02 (2.0%) | |
| May 16 | 210.00 | 24.00 | 150 | 16.0 | 4.02 (2.0%) | |
| 5% Yield On NVMI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 210.00 | 0.90 | 3 | 30.0 | 4.02 (2.0%) | |
| May 16 | 210.00 | 24.00 | 150 | 16.0 | 4.02 (2.0%) | |
| 10% Yield On NVMI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 20 | 210.00 | 0.90 | 3 | 30.0 | 4.02 (2.0%) | |
| May 16 | 210.00 | 24.00 | 150 | 16.0 | 4.02 (2.0%) | |
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| Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | QBTS dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | RGTI dividend | |
| 3. | XLF dividend | 8. | KWEB dividend | 3. | SERV dividend | |
| 4. | QQQ dividend | 9. | TLT dividend | 4. | ACHR dividend | |
| 5. | FXI dividend | 10. | TSLA dividend | 5. | SEDG dividend | |
Want more examples? NVGS Dividend | NVO Dividend
