XENE Dividend Type Payments
Although XENE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Xenon Pharmaceuticals 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 Tue 10:20 AM ET):
| Xenon Pharmaceuticals Inc. - Common Shares (XENE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 37.57 |
37.78 |
37.79 |
-0.05 |
59K |
- |
2.9B |
XENE Dividend-Like Income Using Covered Calls
With XENE at 37.79, 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% |
1.13 |
0.3 |
| 5% |
1.89 |
0.5 |
| 10% |
3.78 |
1.0 |
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 XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
40.00 |
1.20 |
18 |
6.7 |
2.22 (5.9%) |
| Oct 17 |
40.00 |
4.80 |
172 |
2.8 |
2.22 (5.9%) |
| 5% Yield On XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
40.00 |
1.20 |
18 |
6.7 |
2.22 (5.9%) |
| Oct 17 |
40.00 |
4.80 |
172 |
2.8 |
2.22 (5.9%) |
| 10% Yield On XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
40.00 |
1.20 |
18 |
6.7 |
2.22 (5.9%) |
| Oct 17 |
40.00 |
4.80 |
172 |
2.8 |
2.22 (5.9%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
