NOVT Dividend Type Payments
Although NOVT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Novanta Inc. - Common Shares 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):
| Novanta Inc. - Common Shares (NOVT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 105.70 |
111.20 |
105.70 |
+0.35 |
322K |
62 |
3.8B |
NOVT Dividend-Like Income Using Covered Calls
With NOVT at 105.70, 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% |
3.17 |
0.9 |
| 5% |
5.29 |
1.4 |
| 10% |
10.57 |
2.9 |
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 NOVT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
115.00 |
1.65 |
66 |
2.5 |
3.80 (3.6%) |
| May 15 |
115.00 |
7.00 |
213 |
3.3 |
3.80 (3.6%) |
| 5% Yield On NOVT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
115.00 |
1.65 |
66 |
2.5 |
3.80 (3.6%) |
| May 15 |
115.00 |
7.00 |
213 |
3.3 |
3.80 (3.6%) |
| 10% Yield On NOVT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
115.00 |
7.00 |
213 |
3.3 |
3.80 (3.6%) |
| Mar 20 |
115.00 |
5.00 |
157 |
3.2 |
3.80 (3.6%) |
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