NTNX Dividend Type Payments
Although NTNX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Nutanix, Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Nutanix, Inc. - Class A (NTNX) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 38.68 |
40.00 |
39.46 |
-2.32 |
4.3M |
56 |
32B |
NTNX Dividend-Like Income Using Covered Calls
With NTNX at 39.46, 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% |
1.18 |
0.3 |
| 5% |
1.97 |
0.5 |
| 10% |
3.95 |
1.1 |
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 NTNX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
40.00 |
3.80 |
79 |
4.8 |
0.00 (0.0%) |
| Jul 17 |
40.00 |
4.70 |
170 |
2.8 |
0.00 (0.0%) |
| 5% Yield On NTNX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
40.00 |
3.80 |
79 |
4.8 |
0.00 (0.0%) |
| Jul 17 |
40.00 |
4.70 |
170 |
2.8 |
0.00 (0.0%) |
| 10% Yield On NTNX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
40.00 |
3.80 |
79 |
4.8 |
0.00 (0.0%) |
| Jul 17 |
40.00 |
4.70 |
170 |
2.8 |
0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
