VRTX Dividend Type Payments
Although VRTX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vertex Pharmaceuticals Incorporated to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Vertex Pharmaceuticals Incorporated (VRTX) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 400.11 | 412.56 | 407.90 | -4.32 | 1.2M | 29 | 212B |
VRTX Dividend-Like Income Using Covered Calls
With VRTX at 407.90, 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% | 12.24 | 3.4 |
| 5% | 20.40 | 5.6 |
| 10% | 40.79 | 11.2 |
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 VRTX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 7 | 415.00 | 11.90 | 24 | 49.6 | 2.44 (0.6%) | |
| Nov 14 | 415.00 | 12.80 | 31 | 41.3 | 2.44 (0.6%) | |
| 5% Yield On VRTX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 7 | 415.00 | 11.90 | 24 | 49.6 | 2.44 (0.6%) | |
| Nov 14 | 415.00 | 12.80 | 31 | 41.3 | 2.44 (0.6%) | |
| 10% Yield On VRTX Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 7 | 415.00 | 11.90 | 24 | 49.6 | 2.44 (0.6%) | |
| Nov 14 | 415.00 | 12.80 | 31 | 41.3 | 2.44 (0.6%) | |
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| Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | INTC dividend | 1. | BHVN dividend | |
| 2. | IBIT dividend | 7. | SLV dividend | 2. | NB dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | SANA dividend | |
| 4. | GLD dividend | 9. | QQQ dividend | 4. | AREC dividend | |
| 5. | TSLA dividend | 10. | OPEN dividend | 5. | EU dividend | |
Want more examples? VRT Dividend | VSAT Dividend
