THRM Dividend Type Payments

Gentherm Inc dividend

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

Gentherm Inc (THRM)
Bid Ask Last Change Volume P/E Market Cap
49.23 51.61 50.59 +0.58 103K 41 1.6B

THRM Dividend-Like Income Using Covered Calls

With THRM at 50.59, 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% 1.52 0.4
5% 2.53 0.7
10% 5.06 1.4

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 THRM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 55.00 0.70 57 1.2 3.39 (6.7%)
Sep 20 55.00 2.75 148 1.9 3.39 (6.7%)
5% Yield On THRM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 55.00 0.70 57 1.2 3.39 (6.7%)
Sep 20 55.00 2.75 148 1.9 3.39 (6.7%)
10% Yield On THRM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 20 55.00 2.75 148 1.9 3.39 (6.7%)
Oct 18 55.00 3.30 176 1.9 3.39 (6.7%)

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Want more examples? THR Dividend | THS Dividend