VRTX Dividend Type Payments

VERTEX dividend

Although VRTX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VERTEX to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 11:25 AM ET):

VERTEX (VRTX)
Bid Ask Last Change Volume P/E Market Cap
179.37 179.59 179.48 -1.84 272K 111 45B

VRTX Dividend-Like Income Using Covered Calls

With VRTX at 179.48, 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% 5.38 1.5
5% 8.97 2.5
10% 17.95 4.9

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 VRTX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 190.00 0.15 5 3.0 10.41 (5.8%)
Oct 26 200.00 0.20 12 1.7 20.41 (11.4%)
5% Yield On VRTX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 190.00 0.15 5 3.0 10.41 (5.8%)
Oct 26 197.50 0.30 12 2.5 17.91 (10.0%)
10% Yield On VRTX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 187.50 0.45 5 9.0 7.91 (4.4%)
Oct 26 195.00 0.60 12 5.0 15.41 (8.6%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.MU dividend   1.UVXY dividend
2.SPX dividend 7.FXI dividend   2.NIO dividend
3.EEM dividend 8.BAC dividend   3.CRON dividend
4.QQQ dividend 9.AMD dividend   4.PYX dividend
5.PBR dividend 10.XLF dividend   5.TLRY dividend

Want more examples? VRTV Dividend | VSAR Dividend