NVO Dividend Type Payments
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 Fri 4:16 PM ET):
| Novo-Nordisk (NVO) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 47.81 | 51.00 | 50.35 | +0.57 | 2.2M | - | 119B |
NVO Dividend-Like Income Using Covered Calls
With NVO at 50.35, 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% | 1.51 | 0.4 |
| 5% | 2.52 | 0.7 |
| 10% | 5.04 | 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 | |
| Sep 20 | 55.00 | 1.10 | 218 | 0.5 | 4.00 (7.9%) | |
| Jan 17 | 55.00 | 1.85 | 337 | 0.5 | 4.00 (7.9%) | |
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| Top 10 Open Interest For Mar 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPX dividend | 6. | EWZ dividend | 1. | ICPT dividend | |
| 2. | EEM dividend | 7. | GE dividend | 2. | ROKU dividend | |
| 3. | SPY dividend | 8. | XOP dividend | 3. | KPTI dividend | |
| 4. | FXI dividend | 9. | BAC dividend | 4. | BHC dividend | |
| 5. | QQQ dividend | 10. | JD dividend | 5. | VKTX dividend | |
Want more examples? NVMI Dividend | NVRO Dividend
