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 Tue 4:16 PM ET):

NOVO-NORDISK (NVO)
Bid Ask Last Change Volume P/E Market Cap
50.10 50.19 50.14 +0.62 1.6M 20 120B

NVO Dividend-Like Income Using Covered Calls

With NVO at 50.14, 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% 1.50 0.4
5% 2.51 0.7
10% 5.01 1.4

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
Jul 20 50.00 0.35 4 4.0 0.00 (0.0%)
Aug 17 50.00 1.50 32 4.1 0.00 (0.0%)
5% Yield On NVO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 50.00 0.35 4 4.0 0.00 (0.0%)
Aug 17 50.00 1.50 32 4.1 0.00 (0.0%)
10% Yield On NVO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 50.00 0.35 4 4.0 0.00 (0.0%)
Aug 17 50.00 1.50 32 4.1 0.00 (0.0%)

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Top 10 Open Interest For Jul 20 Expiration     Top 5 High Yield
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Want more examples? NVMI Dividend | NVRO Dividend