VICR Dividend Type Payments

VICOR dividend

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

VICOR (VICR)
Bid Ask Last Change Volume P/E Market Cap
56.20 63.65 59.45 -1.20 461K 176 2.4B

VICR Dividend-Like Income Using Covered Calls

With VICR at 59.45, 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% 1.78 0.5
5% 2.97 0.8
10% 5.95 1.6

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 VICR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 75.00 0.25 36 0.7 11.35 (19.1%)
Oct 19 80.00 0.50 64 0.8 16.35 (27.5%)
5% Yield On VICR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 70.00 0.55 36 1.5 6.35 (10.7%)
Oct 19 75.00 0.95 64 1.5 11.35 (19.1%)
10% Yield On VICR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 65.00 1.35 36 3.8 1.35 (2.3%)
Oct 19 70.00 1.70 64 2.7 6.35 (10.7%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
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Want more examples? VICL Dividend | VIDI Dividend