ICHR Dividend Type Payments
Although ICHR has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ichor Holdings - Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 12:20 PM ET):
| Ichor Holdings - Ordinary Shares (ICHR) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 23.19 |
23.26 |
23.22 |
-0.35 |
326K |
- |
0.8B |
ICHR Dividend-Like Income Using Covered Calls
With ICHR at 23.22, 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% |
0.70 |
0.2 |
| 5% |
1.16 |
0.3 |
| 10% |
2.32 |
0.6 |
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 ICHR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
25.00 |
2.25 |
51 |
4.4 |
1.74 (7.5%) |
| Nov 21 |
25.00 |
1.50 |
23 |
6.5 |
1.74 (7.5%) |
| 5% Yield On ICHR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
25.00 |
2.25 |
51 |
4.4 |
1.74 (7.5%) |
| Nov 21 |
25.00 |
1.50 |
23 |
6.5 |
1.74 (7.5%) |
| 10% Yield On ICHR Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
25.00 |
2.25 |
51 |
4.4 |
1.74 (7.5%) |
| Nov 21 |
25.00 |
1.50 |
23 |
6.5 |
1.74 (7.5%) |
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