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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