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 Fri 4:16 PM ET):

Novanta Inc. - Common Shares (NOVT)
Bid Ask Last Change Volume P/E Market Cap
122.69 138.42 131.64 -2.13 181K 69 4.8B

NOVT Dividend-Like Income Using Covered Calls

With NOVT at 131.64, 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% 3.95 1.1
5% 6.58 1.8
10% 13.16 3.6

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
Oct 17 140.00 4.60 99 4.6 1.58 (1.2%)
Dec 19 140.00 5.50 162 3.4 1.58 (1.2%)
5% Yield On NOVT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 140.00 4.60 99 4.6 1.58 (1.2%)
Dec 19 140.00 5.50 162 3.4 1.58 (1.2%)
10% Yield On NOVT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 140.00 4.60 99 4.6 1.58 (1.2%)

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