NVO Dividend Type Payments

NOVO-NORDISK dividend

Although NVO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NOVO-NORDISK to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:40 PM ET):

NOVO-NORDISK (NVO)
Bid Ask Last Change Volume P/E Market Cap
45.32 45.33 45.32 +1.15 1.3M 18 104B

NVO Dividend-Like Income Using Covered Calls

With NVO at 45.32, here's a table showing how big the annual "dividend" (ie. 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% 1.36 0.4
5% 2.27 0.6
10% 4.53 1.2

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 NVO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 48.00 0.20 33 0.6 2.67 (5.9%)
Jan 18 49.00 0.30 61 0.5 3.67 (8.1%)
5% Yield On NVO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 47.00 0.40 33 1.2 1.67 (3.7%)
Jan 18 48.00 0.50 61 0.8 2.67 (5.9%)
10% Yield On NVO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 46.00 0.80 33 2.4 0.67 (1.5%)
Jan 18 47.00 0.80 61 1.3 1.67 (3.7%)

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