NICE Dividend Type Payments
Although NICE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NICE Ltd - American Depositary Shares each representing one Ordinary Sha to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| NICE Ltd - American Depositary Shares each representing one Ordinary Sha (NICE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 224.85 | 234.89 | 230.71 | +2.28 | 170K | 45 | 6.1B |
NICE Dividend-Like Income Using Covered Calls
With NICE at 230.71, 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% | 6.92 | 1.9 |
| 5% | 11.54 | 3.2 |
| 10% | 23.07 | 6.3 |
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 NICE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 240.00 | 6.10 | 24 | 25.4 | 5.11 (2.2%) | |
| Jun 21 | 240.00 | 9.40 | 59 | 15.9 | 5.11 (2.2%) | |
| 5% Yield On NICE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 240.00 | 6.10 | 24 | 25.4 | 5.11 (2.2%) | |
| Jun 21 | 240.00 | 9.40 | 59 | 15.9 | 5.11 (2.2%) | |
| 10% Yield On NICE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 17 | 240.00 | 6.10 | 24 | 25.4 | 5.11 (2.2%) | |
| Jun 21 | 240.00 | 9.40 | 59 | 15.9 | 5.11 (2.2%) | |
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | EEM dividend | 1. | SNAP dividend | |
| 2. | HYG dividend | 7. | KWEB dividend | 2. | META dividend | |
| 3. | QQQ dividend | 8. | TSLA dividend | 3. | FSLY dividend | |
| 4. | SPY dividend | 9. | SLV dividend | 4. | CVNA dividend | |
| 5. | FXI dividend | 10. | EWZ dividend | 5. | PINS dividend | |
Want more examples? NI Dividend | NINE Dividend
