ORA Dividend Type Payments

Ormat Technologies, Inc dividend

Although ORA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ormat Technologies, Inc 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):

Ormat Technologies, Inc (ORA)
Bid Ask Last Change Volume P/E Market Cap
52.43 56.02 55.23 -0.14 88K 29 2.8B

ORA Dividend-Like Income Using Covered Calls

With ORA at 55.23, 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% 1.66 0.5
5% 2.76 0.8
10% 5.52 1.5

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 ORA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 60.00 0.85 96 0.9 3.98 (7.2%)
Sep 20 60.00 1.90 187 1.0 3.98 (7.2%)
5% Yield On ORA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 60.00 0.85 96 0.9 3.98 (7.2%)
Sep 20 60.00 1.90 187 1.0 3.98 (7.2%)

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Want more examples? OR Dividend | ORAN Dividend