ISRG Dividend Type Payments

INTUITIVE SURGICAL dividend

Although ISRG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on INTUITIVE SURGICAL 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):

INTUITIVE SURGICAL (ISRG)
Bid Ask Last Change Volume P/E Market Cap
521.99 530.00 524.92 +1.02 528K 74 60B

ISRG Dividend-Like Income Using Covered Calls

With ISRG at 524.92, 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% 15.75 4.3
5% 26.25 7.2
10% 52.49 14.4

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 ISRG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 542.50 0.50 8 6.3 12.50 (2.4%)
Aug 31 550.00 1.25 15 8.3 20.00 (3.8%)
5% Yield On ISRG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 540.00 0.95 8 11.9 10.00 (1.9%)
Aug 31 550.00 1.25 15 8.3 20.00 (3.8%)
10% Yield On ISRG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 535.00 1.85 8 23.1 5.00 (1.0%)
Aug 31 537.50 2.80 15 18.7 7.50 (1.4%)

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