INMD Dividend Type Payments
Although INMD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on InMode Ltd. - Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| InMode Ltd. - Ordinary Shares (INMD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 14.58 |
15.00 |
14.63 |
-0.06 |
691K |
6.1 |
1.1B |
INMD Dividend-Like Income Using Covered Calls
With INMD at 14.63, 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% |
0.44 |
0.1 |
| 5% |
0.73 |
0.2 |
| 10% |
1.46 |
0.4 |
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 INMD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
15.00 |
0.40 |
46 |
0.9 |
0.00 (0.0%) |
| Nov 21 |
15.00 |
0.40 |
18 |
2.2 |
0.00 (0.0%) |
| 5% Yield On INMD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
15.00 |
0.40 |
46 |
0.9 |
0.00 (0.0%) |
| Nov 21 |
15.00 |
0.40 |
18 |
2.2 |
0.00 (0.0%) |
| 10% Yield On INMD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
15.00 |
0.40 |
46 |
0.9 |
0.00 (0.0%) |
| Nov 21 |
15.00 |
0.40 |
18 |
2.2 |
0.00 (0.0%) |
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