ESTA Dividend Type Payments
Although ESTA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Establishment Labs Holdings 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 Thu 10:30 AM ET):
| Establishment Labs Holdings Inc. - Common Shares (ESTA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 38.21 |
38.58 |
38.40 |
+0.90 |
27K |
- |
1.1B |
ESTA Dividend-Like Income Using Covered Calls
With ESTA at 38.40, 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% |
1.15 |
0.3 |
| 5% |
1.92 |
0.5 |
| 10% |
3.84 |
1.1 |
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 ESTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
40.00 |
2.60 |
51 |
5.1 |
1.42 (3.7%) |
| Jul 18 |
40.00 |
0.75 |
23 |
3.3 |
1.42 (3.7%) |
| 5% Yield On ESTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
40.00 |
2.60 |
51 |
5.1 |
1.42 (3.7%) |
| Jul 18 |
40.00 |
0.75 |
23 |
3.3 |
1.42 (3.7%) |
| 10% Yield On ESTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
40.00 |
2.60 |
51 |
5.1 |
1.42 (3.7%) |
| Jul 18 |
40.00 |
0.75 |
23 |
3.3 |
1.42 (3.7%) |
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