DVA Dividend Type Payments

DaVita Inc. dividend

Although DVA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DaVita Inc. 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):

DaVita Inc. (DVA)
Bid Ask Last Change Volume P/E Market Cap
139.38 142.95 141.13 +0.69 575K 13 11B

DVA Dividend-Like Income Using Covered Calls

With DVA at 141.13, 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% 4.23 1.2
5% 7.06 1.9
10% 14.11 3.9

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 DVA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 145.00 5.00 15 33.3 2.05 (1.5%)
Oct 17 145.00 14.10 169 8.3 2.05 (1.5%)
5% Yield On DVA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 145.00 5.00 15 33.3 2.05 (1.5%)
Oct 17 145.00 14.10 169 8.3 2.05 (1.5%)
10% Yield On DVA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 145.00 5.00 15 33.3 2.05 (1.5%)
Oct 17 145.00 14.10 169 8.3 2.05 (1.5%)

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

 
 
Top 10 Open Interest For May 16 Expiration     Top 5 High Yield
1.NVDA dividend 6.IWM dividend   1.APP dividend
2.SPY dividend 7.FXI dividend   2.CVI dividend
3.TLT dividend 8.GLD dividend   3.PTON dividend
4.SLV dividend 9.TSLA dividend   4.PINS dividend
5.QQQ dividend 10.INTC dividend   5.UPST dividend

Want more examples? DV Dividend | DVAX Dividend