ATHM Dividend Type Payments

Autohome Inc. American Depositary Shares, each representing four class A dividend

Although ATHM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Autohome Inc. American Depositary Shares, each representing four class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Autohome Inc. American Depositary Shares, each representing four class A (ATHM)
Bid Ask Last Change Volume P/E Market Cap
25.70 27.30 25.79 -0.14 274K 58 0.0B

ATHM Dividend-Like Income Using Covered Calls

With ATHM at 25.79, 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% 0.77 0.2
5% 1.29 0.4
10% 2.58 0.7

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 ATHM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 30.00 0.40 82 0.5 2.70 (10.5%)
Dec 19 30.00 1.00 173 0.6 2.70 (10.5%)
5% Yield On ATHM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 30.00 0.40 82 0.5 2.70 (10.5%)
Dec 19 30.00 1.00 173 0.6 2.70 (10.5%)

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