CDNA Dividend Type Payments

Although CDNA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on CareDx, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:05 AM ET):

CareDx, Inc (CDNA)
Bid Ask Last Change Volume P/E Market Cap
28.78 28.85 28.82 +0.78 243K - 1.2B

CDNA Dividend-Like Income Using Covered Calls

With CDNA at 28.82, 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% 0.86 0.2
5% 1.44 0.4
10% 2.88 0.8

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 CDNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 35.00 0.40 22 1.8 6.15 (21.3%)
Apr 18 35.00 1.05 56 1.9 6.15 (21.3%)
5% Yield On CDNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 35.00 0.40 22 1.8 6.15 (21.3%)
Apr 18 35.00 1.05 56 1.9 6.15 (21.3%)
10% Yield On CDNA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 35.00 0.40 22 1.8 6.15 (21.3%)
Apr 18 35.00 1.05 56 1.9 6.15 (21.3%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.AMRN dividend
2.EEM dividend 7.GE dividend   2.CRON dividend
3.SPY dividend 8.LLY dividend   3.PCG dividend
4.QQQ dividend 9.BAC dividend   4.FIT dividend
5.FXI dividend 10.GLD dividend   5.KPTI dividend

Want more examples? CDMO Dividend | CDNS Dividend