XON Dividend Type Payments

INTREXON CORP dividend

Although XON has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on INTREXON CORP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:20 AM ET):

INTREXON CORP (XON)
Bid Ask Last Change Volume P/E Market Cap
14.94 14.98 14.94 -0.14 164K - 2.1B

XON Dividend-Like Income Using Covered Calls

With XON at 14.94, 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% 0.45 0.1
5% 0.75 0.2
10% 1.49 0.4

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 XON Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 23.00 0.05 30 0.2 8.02 (53.7%)
Jan 18 27.00 0.15 93 0.2 12.02 (80.5%)
5% Yield On XON Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 21.00 0.10 30 0.3 6.02 (40.3%)
Jan 18 25.00 0.20 93 0.2 10.02 (67.1%)
10% Yield On XON Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 20.00 0.15 30 0.5 5.02 (33.6%)
Jan 18 22.00 0.40 93 0.4 7.02 (47.0%)

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