ESTA Dividend Type Payments
Although ESTA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Establishment Labs Holdings 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 Wed 1:15 PM ET):
| Establishment Labs Holdings Inc. - Common Shares (ESTA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 67.20 |
67.38 |
67.29 |
+2.72 |
190K |
- |
1.9B |
ESTA Dividend-Like Income Using Covered Calls
With ESTA at 67.29, 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% |
2.02 |
0.6 |
| 5% |
3.36 |
0.9 |
| 10% |
6.73 |
1.8 |
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 ESTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
67.50 |
2.60 |
31 |
8.4 |
0.12 (0.2%) |
| Nov 21 |
67.50 |
0.15 |
3 |
5.0 |
0.12 (0.2%) |
| 5% Yield On ESTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
67.50 |
2.60 |
31 |
8.4 |
0.12 (0.2%) |
| Nov 21 |
67.50 |
0.15 |
3 |
5.0 |
0.12 (0.2%) |
| 10% Yield On ESTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
67.50 |
2.60 |
31 |
8.4 |
0.12 (0.2%) |
| Nov 21 |
67.50 |
0.15 |
3 |
5.0 |
0.12 (0.2%) |
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