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
48.64 48.79 48.69 -0.03 630K 20 119B

NVO Dividend-Like Income Using Covered Calls

With NVO at 48.69, 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% 1.46 0.4
5% 2.43 0.7
10% 4.87 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
Jun 15 50.00 0.70 26 2.7 1.21 (2.5%)
Jul 20 50.00 1.15 61 1.9 1.21 (2.5%)
5% Yield On NVO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 15 50.00 0.70 26 2.7 1.21 (2.5%)
Jul 20 50.00 1.15 61 1.9 1.21 (2.5%)
10% Yield On NVO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 15 50.00 0.70 26 2.7 1.21 (2.5%)
Jul 20 50.00 1.15 61 1.9 1.21 (2.5%)

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Top 10 Open Interest For Jun 15 Expiration     Top 5 High Yield
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5.XLF dividend 10.EFA dividend   5.I dividend

Want more examples? NVMI Dividend | NVRO Dividend