NVMI Dividend Type Payments
Although NVMI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Nova 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 11:00 AM ET):
| Nova Ltd. - Ordinary Shares (NVMI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 193.22 | 194.51 | 193.22 | -2.85 | 58K | 34 | 5.6B |
NVMI Dividend-Like Income Using Covered Calls
With NVMI at 193.22, 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% | 5.80 | 1.6 |
| 5% | 9.66 | 2.6 |
| 10% | 19.32 | 5.3 |
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 NVMI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 195.00 | 22.60 | 102 | 22.2 | 0.49 (0.3%) | |
| May 16 | 195.00 | 9.50 | 11 | 86.4 | 0.49 (0.3%) | |
| 5% Yield On NVMI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 195.00 | 22.60 | 102 | 22.2 | 0.49 (0.3%) | |
| May 16 | 195.00 | 9.50 | 11 | 86.4 | 0.49 (0.3%) | |
| 10% Yield On NVMI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 195.00 | 22.60 | 102 | 22.2 | 0.49 (0.3%) | |
| May 16 | 195.00 | 9.50 | 11 | 86.4 | 0.49 (0.3%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | APP dividend | |
| 2. | SPY dividend | 7. | FXI dividend | 2. | UPST dividend | |
| 3. | TLT dividend | 8. | TSLA dividend | 3. | EOSE dividend | |
| 4. | SLV dividend | 9. | GLD dividend | 4. | TEM dividend | |
| 5. | QQQ dividend | 10. | INTC dividend | 5. | PINS dividend | |
Want more examples? NVGS Dividend | NVO Dividend
