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 Fri 4:16 PM ET):
| Establishment Labs Holdings Inc. - Common Shares (ESTA) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 42.60 |
49.00 |
47.27 |
+0.68 |
266K |
- |
1.3B |
ESTA Dividend-Like Income Using Covered Calls
With ESTA at 47.27, 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% |
1.42 |
0.4 |
| 5% |
2.36 |
0.6 |
| 10% |
4.73 |
1.3 |
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 |
50.00 |
2.45 |
64 |
3.8 |
1.00 (2.1%) |
| Nov 21 |
50.00 |
1.70 |
36 |
4.7 |
1.00 (2.1%) |
| 5% Yield On ESTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
50.00 |
2.45 |
64 |
3.8 |
1.00 (2.1%) |
| Nov 21 |
50.00 |
1.70 |
36 |
4.7 |
1.00 (2.1%) |
| 10% Yield On ESTA Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
50.00 |
2.45 |
64 |
3.8 |
1.00 (2.1%) |
| Nov 21 |
50.00 |
1.70 |
36 |
4.7 |
1.00 (2.1%) |
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