XENE Dividend Type Payments
Although XENE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Xenon Pharmaceuticals Inc. - Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Xenon Pharmaceuticals Inc. - Common Shares (XENE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 40.11 |
46.60 |
43.04 |
-0.40 |
701K |
- |
3.3B |
XENE Dividend-Like Income Using Covered Calls
With XENE at 43.04, 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% |
1.29 |
0.4 |
| 5% |
2.15 |
0.6 |
| 10% |
4.30 |
1.2 |
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 XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
47.50 |
0.65 |
60 |
1.1 |
0.90 (2.1%) |
| Nov 21 |
50.00 |
0.50 |
32 |
1.6 |
3.40 (7.9%) |
| 5% Yield On XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
47.50 |
0.65 |
60 |
1.1 |
0.90 (2.1%) |
| Nov 21 |
50.00 |
0.50 |
32 |
1.6 |
3.40 (7.9%) |
| 10% Yield On XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
50.00 |
0.50 |
32 |
1.6 |
3.40 (7.9%) |
| Jan 16 |
47.50 |
3.20 |
88 |
3.6 |
0.90 (2.1%) |
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