BABY Dividend Type Payments

NATUS MEDICAL dividend

Although BABY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NATUS MEDICAL to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

NATUS MEDICAL (BABY)
Bid Ask Last Change Volume P/E Market Cap
34.70 38.95 35.90 +0.50 211K - 1.2B

BABY Dividend-Like Income Using Covered Calls

With BABY at 35.90, here's a table showing how big the annual "dividend" (ie. 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% 1.08 0.3
5% 1.80 0.5
10% 3.59 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 BABY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 40.00 0.30 59 0.5 1.05 (2.9%)
Oct 19 42.50 0.75 150 0.5 3.55 (9.9%)
5% Yield On BABY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 40.00 0.30 59 0.5 1.05 (2.9%)
Oct 19 42.50 0.75 150 0.5 3.55 (9.9%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Jun 15 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.GPS dividend
2.EEM dividend 7.BAC dividend   2.TXMD dividend
3.SPX dividend 8.HYG dividend   3.GERN dividend
4.GE dividend 9.IWM dividend   4.UVXY dividend
5.XLF dividend 10.T dividend   5.GPRO dividend

Want more examples? BABA Dividend | BAC Dividend