NVMI Dividend Type Payments
Although NVMI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Nova Ltd. - Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:00 AM ET):
| Nova Ltd. - Ordinary Shares (NVMI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 322.85 | 324.05 | 323.58 | +7.74 | 24K | 41 | 9.1B |
NVMI Dividend-Like Income Using Covered Calls
With NVMI at 323.58, 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% | 9.71 | 2.7 |
| 5% | 16.18 | 4.4 |
| 10% | 32.36 | 8.9 |
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 NVMI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 330.00 | 4.30 | 5 | 86.0 | 5.95 (1.8%) | |
| May 15 | 330.00 | 41.20 | 152 | 27.1 | 5.95 (1.8%) | |
| 5% Yield On NVMI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 330.00 | 4.30 | 5 | 86.0 | 5.95 (1.8%) | |
| May 15 | 330.00 | 41.20 | 152 | 27.1 | 5.95 (1.8%) | |
| 10% Yield On NVMI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 330.00 | 4.30 | 5 | 86.0 | 5.95 (1.8%) | |
| May 15 | 330.00 | 41.20 | 152 | 27.1 | 5.95 (1.8%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | EWTX dividend | |
| 2. | SPY dividend | 7. | TLT dividend | 2. | NKTR dividend | |
| 3. | IBIT dividend | 8. | TSLA dividend | 3. | OMER dividend | |
| 4. | IWM dividend | 9. | SLV dividend | 4. | TE dividend | |
| 5. | QQQ dividend | 10. | NFLX dividend | 5. | IMNM dividend | |
Want more examples? NVGS Dividend | NVO Dividend
