GMAB Dividend Type Payments
Although GMAB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Genmab A/S - American Depositary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Genmab A/S - American Depositary Shares (GMAB) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 19.00 |
19.70 |
19.58 |
-0.32 |
1.0M |
- |
0.8B |
GMAB Dividend-Like Income Using Covered Calls
With GMAB at 19.58, 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% |
0.59 |
0.2 |
| 5% |
0.98 |
0.3 |
| 10% |
1.96 |
0.5 |
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 GMAB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
22.50 |
0.50 |
138 |
0.4 |
2.80 (14.3%) |
| May 16 |
20.00 |
0.80 |
47 |
1.7 |
0.30 (1.5%) |
| 5% Yield On GMAB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
22.50 |
0.50 |
138 |
0.4 |
2.80 (14.3%) |
| May 16 |
20.00 |
0.80 |
47 |
1.7 |
0.30 (1.5%) |
| 10% Yield On GMAB Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
20.00 |
0.80 |
47 |
1.7 |
0.30 (1.5%) |
| Nov 21 |
20.00 |
1.70 |
236 |
0.7 |
0.30 (1.5%) |
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