INMD Dividend Type Payments
Although INMD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on InMode Ltd. - Ordinary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| InMode Ltd. - Ordinary Shares (INMD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 15.12 |
15.46 |
15.44 |
+0.14 |
921K |
6.4 |
1.2B |
INMD Dividend-Like Income Using Covered Calls
With INMD at 15.44, 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% |
0.46 |
0.1 |
| 5% |
0.77 |
0.2 |
| 10% |
1.54 |
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 INMD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
16.00 |
0.60 |
39 |
1.5 |
0.54 (3.5%) |
| May 15 |
16.00 |
1.85 |
214 |
0.9 |
0.54 (3.5%) |
| 5% Yield On INMD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
16.00 |
0.60 |
39 |
1.5 |
0.54 (3.5%) |
| May 15 |
16.00 |
1.85 |
214 |
0.9 |
0.54 (3.5%) |
| 10% Yield On INMD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
16.00 |
0.60 |
39 |
1.5 |
0.54 (3.5%) |
| May 15 |
16.00 |
1.85 |
214 |
0.9 |
0.54 (3.5%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
