BABY Dividend Type Payments

Natus Medical, Inc dividend

Although BABY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Natus Medical, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:50 PM ET):

Natus Medical, Inc (BABY)
Bid Ask Last Change Volume P/E Market Cap
24.84 24.88 24.87 +0.49 261K -60.5 0.8B

BABY Dividend-Like Income Using Covered Calls

With BABY at 24.87, 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% 0.75 0.2
5% 1.24 0.3
10% 2.49 0.7

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 19 25.00 0.65 31 2.1 0.12 (0.5%)
Oct 18 30.00 0.35 122 0.3 5.12 (20.6%)
5% Yield On BABY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 25.00 0.65 31 2.1 0.12 (0.5%)
Oct 18 27.50 0.95 122 0.8 2.62 (10.5%)
10% Yield On BABY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 25.00 0.65 31 2.1 0.12 (0.5%)
Oct 18 27.50 0.95 122 0.8 2.62 (10.5%)

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