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 Tue 9:45 AM ET):
| Xenon Pharmaceuticals Inc. - Common Shares (XENE) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 41.94 |
42.31 |
42.12 |
+0.68 |
25K |
- |
3.2B |
XENE Dividend-Like Income Using Covered Calls
With XENE at 42.12, 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% |
1.26 |
0.3 |
| 5% |
2.11 |
0.6 |
| 10% |
4.21 |
1.2 |
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 XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
42.50 |
6.80 |
74 |
9.2 |
0.19 (0.5%) |
| Jul 17 |
42.50 |
7.50 |
165 |
4.5 |
0.19 (0.5%) |
| 5% Yield On XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
42.50 |
6.80 |
74 |
9.2 |
0.19 (0.5%) |
| Jul 17 |
42.50 |
7.50 |
165 |
4.5 |
0.19 (0.5%) |
| 10% Yield On XENE Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 17 |
42.50 |
6.80 |
74 |
9.2 |
0.19 (0.5%) |
| Jul 17 |
42.50 |
7.50 |
165 |
4.5 |
0.19 (0.5%) |
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