NTNX Dividend Type Payments
Although NTNX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Nutanix, Inc. - Class A 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):
| Nutanix, Inc. - Class A (NTNX) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 63.80 |
67.00 |
65.44 |
+0.30 |
1.7M |
- |
50B |
NTNX Dividend-Like Income Using Covered Calls
With NTNX at 65.44, 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% |
1.96 |
0.5 |
| 5% |
3.27 |
0.9 |
| 10% |
6.54 |
1.8 |
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 NTNX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
67.50 |
4.00 |
87 |
4.6 |
0.50 (0.8%) |
| Jul 18 |
67.50 |
5.40 |
179 |
3.0 |
0.50 (0.8%) |
| 5% Yield On NTNX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
67.50 |
4.00 |
87 |
4.6 |
0.50 (0.8%) |
| Jul 18 |
67.50 |
5.40 |
179 |
3.0 |
0.50 (0.8%) |
| 10% Yield On NTNX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
67.50 |
4.00 |
87 |
4.6 |
0.50 (0.8%) |
| Jul 18 |
67.50 |
5.40 |
179 |
3.0 |
0.50 (0.8%) |
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