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 4:16 PM ET):

Novo-Nordisk (NVO)
Bid Ask Last Change Volume P/E Market Cap
47.28 48.61 48.40 +0.41 880K - 114B

NVO Dividend-Like Income Using Covered Calls

With NVO at 48.40, 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% 1.45 0.4
5% 2.42 0.7
10% 4.84 1.3

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
Aug 16 50.00 0.70 26 2.7 1.39 (2.9%)
Sep 20 50.00 1.00 61 1.6 1.39 (2.9%)
5% Yield On NVO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 50.00 0.70 26 2.7 1.39 (2.9%)
Sep 20 50.00 1.00 61 1.6 1.39 (2.9%)
10% Yield On NVO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 50.00 0.70 26 2.7 1.39 (2.9%)
Sep 20 50.00 1.00 61 1.6 1.39 (2.9%)

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Want more examples? NVMI Dividend | NVRO Dividend