NOVT Dividend Type Payments
Although NOVT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Novanta 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 Tue 4:16 PM ET):
| Novanta Inc. - Common Shares (NOVT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 123.15 |
134.29 |
127.68 |
-3.61 |
487K |
78 |
4.7B |
NOVT Dividend-Like Income Using Covered Calls
With NOVT at 127.68, 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% |
3.83 |
1.0 |
| 5% |
6.38 |
1.7 |
| 10% |
12.77 |
3.5 |
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 NOVT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
135.00 |
4.00 |
53 |
7.5 |
0.71 (0.6%) |
| Nov 21 |
135.00 |
2.20 |
25 |
8.8 |
0.71 (0.6%) |
| 5% Yield On NOVT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
135.00 |
4.00 |
53 |
7.5 |
0.71 (0.6%) |
| Nov 21 |
135.00 |
2.20 |
25 |
8.8 |
0.71 (0.6%) |
| 10% Yield On NOVT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
135.00 |
4.00 |
53 |
7.5 |
0.71 (0.6%) |
| Nov 21 |
135.00 |
2.20 |
25 |
8.8 |
0.71 (0.6%) |
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