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 Fri 4:16 PM ET):
| Xenon Pharmaceuticals Inc. - Common Shares (XENE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 35.00 |
38.03 |
35.32 |
+0.14 |
247K |
- |
2.7B |
XENE Dividend-Like Income Using Covered Calls
With XENE at 35.32, 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% |
1.06 |
0.3 |
| 5% |
1.77 |
0.5 |
| 10% |
3.53 |
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 |
| Oct 17 |
40.00 |
6.70 |
218 |
3.1 |
1.97 (5.6%) |
| Jul 18 |
40.00 |
2.40 |
127 |
1.9 |
1.97 (5.6%) |
| 5% Yield On XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
40.00 |
6.70 |
218 |
3.1 |
1.97 (5.6%) |
| Jul 18 |
40.00 |
2.40 |
127 |
1.9 |
1.97 (5.6%) |
| 10% Yield On XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
40.00 |
6.70 |
218 |
3.1 |
1.97 (5.6%) |
| Jul 18 |
40.00 |
2.40 |
127 |
1.9 |
1.97 (5.6%) |
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