IRTC Dividend Type Payments

Although IRTC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on IRHYTHM TECHNOLOGIES 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):

IRHYTHM TECHNOLOGIES (IRTC)
Bid Ask Last Change Volume P/E Market Cap
79.76 85.47 82.12 -0.93 268K - 2.0B

IRTC Dividend-Like Income Using Covered Calls

With IRTC at 82.12, 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% 2.46 0.7
5% 4.11 1.1
10% 8.21 2.2

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 IRTC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 90.00 0.75 36 2.1 4.53 (5.5%)
Nov 16 95.00 2.05 92 2.2 9.53 (11.6%)
5% Yield On IRTC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 90.00 0.75 36 2.1 4.53 (5.5%)
Nov 16 95.00 2.05 92 2.2 9.53 (11.6%)
10% Yield On IRTC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 90.00 2.65 92 2.9 4.53 (5.5%)
Feb 15 90.00 5.40 183 3.0 4.53 (5.5%)

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Want more examples? IRT Dividend | IRWD Dividend