SWAV Dividend Type Payments
Although SWAV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ShockWave Medical, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 1:40 PM ET):
| ShockWave Medical, Inc. (SWAV) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 330.44 | 330.54 | 330.50 | -0.37 | 314K | 78 | 12B |
SWAV Dividend-Like Income Using Covered Calls
With SWAV at 330.50, 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% | 9.92 | 2.7 |
| 5% | 16.53 | 4.5 |
| 10% | 33.05 | 9.1 |
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:
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | QQQ dividend | 6. | FXI dividend | 1. | IEP dividend | |
| 2. | SPY dividend | 7. | EWZ dividend | 2. | TTWO dividend | |
| 3. | IWM dividend | 8. | NVDA dividend | 3. | OKLO dividend | |
| 4. | TSLA dividend | 9. | EEM dividend | 4. | NVAX dividend | |
| 5. | HYG dividend | 10. | AMZN dividend | 5. | ALT dividend | |
Want more examples? SWAN Dividend | SWBI Dividend
