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 Fri 4:16 PM ET):
Novanta Inc. - Common Shares (NOVT) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
166.88 |
185.44 |
176.47 |
-1.81 |
126K |
88 |
6.4B |
NOVT Dividend-Like Income Using Covered Calls
With NOVT at 176.47, 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% |
5.29 |
1.5 |
5% |
8.82 |
2.4 |
10% |
17.65 |
4.8 |
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 |
Nov 15 |
185.00 |
3.50 |
50 |
6.1 |
0.00 (0.0%) |
May 16 |
185.00 |
14.00 |
232 |
5.8 |
0.00 (0.0%) |
5% Yield On NOVT Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
185.00 |
3.50 |
50 |
6.1 |
0.00 (0.0%) |
May 16 |
185.00 |
14.00 |
232 |
5.8 |
0.00 (0.0%) |
10% Yield On NOVT Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 15 |
185.00 |
3.50 |
50 |
6.1 |
0.00 (0.0%) |
May 16 |
185.00 |
14.00 |
232 |
5.8 |
0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial