XENE Dividend Type Payments
Although XENE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Xenon Pharmaceuticals 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 Thu 4:16 PM ET):
| Xenon Pharmaceuticals Inc. - Common Shares (XENE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 31.47 |
34.16 |
33.26 |
-0.11 |
490K |
- |
2.6B |
XENE Dividend-Like Income Using Covered Calls
With XENE at 33.26, 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% |
1.00 |
0.3 |
| 5% |
1.66 |
0.5 |
| 10% |
3.33 |
0.9 |
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 XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
35.00 |
1.20 |
107 |
1.1 |
0.84 (2.5%) |
| Dec 19 |
35.00 |
3.80 |
170 |
2.2 |
0.84 (2.5%) |
| 5% Yield On XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
35.00 |
1.20 |
107 |
1.1 |
0.84 (2.5%) |
| Dec 19 |
35.00 |
3.80 |
170 |
2.2 |
0.84 (2.5%) |
| 10% Yield On XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
35.00 |
1.20 |
107 |
1.1 |
0.84 (2.5%) |
| Dec 19 |
35.00 |
3.80 |
170 |
2.2 |
0.84 (2.5%) |
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