NICE Dividend Type Payments
Although NICE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NICE Ltd - American Depositary Shares each representing one Ordinary Sha 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):
| NICE Ltd - American Depositary Shares each representing one Ordinary Sha (NICE) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 131.02 | 134.00 | 133.38 | +1.40 | 1.4M | 15 | 3.5B |
NICE Dividend-Like Income Using Covered Calls
With NICE at 133.38, 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% | 4.00 | 1.1 |
| 5% | 6.67 | 1.8 |
| 10% | 13.34 | 3.7 |
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 NICE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 135.00 | 5.30 | 36 | 14.7 | 1.00 (0.7%) | |
| Nov 21 | 135.00 | 2.70 | 8 | 33.8 | 1.00 (0.7%) | |
| 5% Yield On NICE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 135.00 | 5.30 | 36 | 14.7 | 1.00 (0.7%) | |
| Nov 21 | 135.00 | 2.70 | 8 | 33.8 | 1.00 (0.7%) | |
| 10% Yield On NICE Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 135.00 | 5.30 | 36 | 14.7 | 1.00 (0.7%) | |
| Nov 21 | 135.00 | 2.70 | 8 | 33.8 | 1.00 (0.7%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | SPY dividend | 1. | IMNM dividend | |
| 2. | NVDA dividend | 7. | TLT dividend | 2. | RZLT dividend | |
| 3. | KVUE dividend | 8. | GLD dividend | 3. | AGIO dividend | |
| 4. | SLV dividend | 9. | QQQ dividend | 4. | VTYX dividend | |
| 5. | TSLA dividend | 10. | ASST dividend | 5. | TMC dividend | |
Want more examples? NI Dividend | NINE Dividend
