EVH Dividend Type Payments

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

Evolent Health, Inc (EVH)
Bid Ask Last Change Volume P/E Market Cap
20.49 27.00 20.50 +0.27 804K - 0.0B

EVH Dividend-Like Income Using Covered Calls

With EVH at 20.50, 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% 0.62 0.2
5% 1.03 0.3
10% 2.05 0.6

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 EVH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 30.00 0.20 96 0.2 3.00 (14.6%)
Jun 21 30.00 0.65 194 0.3 3.00 (14.6%)
5% Yield On EVH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 30.00 0.65 194 0.3 3.00 (14.6%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.DXPE dividend 6.NXTM dividend   1. dividend
2.NVT dividend 7.MTOR dividend   2. dividend
3.MSEX dividend 8.WLTW dividend   3. dividend
4.WGP dividend 9.EDZ dividend   4. dividend
5.ECH dividend 10.ODFL dividend   5. dividend

Want more examples? EVC Dividend | EVIX Dividend