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 Fri 4:16 PM ET):
| Nova Ltd. - Ordinary Shares (NVMI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 459.67 | 487.00 | 459.95 | +33.24 | 449K | 56 | 12B |
NVMI Dividend-Like Income Using Covered Calls
With NVMI at 459.95, 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% | 13.80 | 3.8 |
| 5% | 23.00 | 6.3 |
| 10% | 46.00 | 12.6 |
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 | |
| Feb 20 | 490.00 | 14.00 | 15 | 93.3 | 3.00 (0.7%) | |
| Mar 20 | 490.00 | 27.20 | 43 | 63.3 | 3.00 (0.7%) | |
| 5% Yield On NVMI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 490.00 | 14.00 | 15 | 93.3 | 3.00 (0.7%) | |
| Mar 20 | 490.00 | 27.20 | 43 | 63.3 | 3.00 (0.7%) | |
| 10% Yield On NVMI Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 20 | 490.00 | 14.00 | 15 | 93.3 | 3.00 (0.7%) | |
| Mar 20 | 490.00 | 27.20 | 43 | 63.3 | 3.00 (0.7%) | |
Want to increase dividends with covered calls? Sign Up For A Free Trial
| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | QQQ dividend | 1. | OCUL dividend | |
| 2. | KWEB dividend | 7. | SPY dividend | 2. | APLD dividend | |
| 3. | NVDA dividend | 8. | EWZ dividend | 3. | AXTI dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | U dividend | |
| 5. | GLD dividend | 10. | INTC dividend | 5. | QS dividend | |
Want more examples? NVGS Dividend | NVO Dividend
