PROF Dividend Type Payments
Although PROF has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Profound Medical Corp. - common stock 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):
Profound Medical Corp. - common stock (PROF) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
4.60 |
8.50 |
8.03 |
0.00 |
10K |
- |
0.1B |
PROF Dividend-Like Income Using Covered Calls
With PROF at 8.03, here's a table showing how big the annual "dividend" (i.e. 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% |
0.24 |
0.1 |
5% |
0.40 |
0.1 |
10% |
0.80 |
0.2 |
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 PROF Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 21 |
10.00 |
0.15 |
57 |
0.3 |
1.50 (18.7%) |
Jul 19 |
10.00 |
0.20 |
85 |
0.2 |
1.50 (18.7%) |
5% Yield On PROF Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 21 |
10.00 |
0.15 |
57 |
0.3 |
1.50 (18.7%) |
Jul 19 |
10.00 |
0.20 |
85 |
0.2 |
1.50 (18.7%) |
10% Yield On PROF Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 21 |
10.00 |
0.15 |
57 |
0.3 |
1.50 (18.7%) |
Jul 19 |
10.00 |
0.20 |
85 |
0.2 |
1.50 (18.7%) |
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