XNCR Dividend Type Payments

Although XNCR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Xencor, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 2:35 PM ET):

Xencor, Inc (XNCR)
Bid Ask Last Change Volume P/E Market Cap
44.01 44.08 44.01 -0.33 116K 69 2.5B

XNCR Dividend-Like Income Using Covered Calls

With XNCR at 44.01, 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% 1.32 0.4
5% 2.20 0.6
10% 4.40 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 XNCR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 45.00 0.05 5 1.0 0.92 (2.1%)
Aug 16 50.00 0.25 33 0.8 5.92 (13.5%)
5% Yield On XNCR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 45.00 0.05 5 1.0 0.92 (2.1%)
Aug 16 50.00 0.25 33 0.8 5.92 (13.5%)
10% Yield On XNCR Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 45.00 1.70 33 5.2 0.92 (2.1%)
Nov 15 50.00 2.40 124 1.9 5.92 (13.5%)

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Want more examples? XMX Dividend | XNET Dividend