BIDU Dividend Type Payments
Although BIDU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Baidu, Inc. - American Depositary Shares, each representing 8 ordinary s 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):
| Baidu, Inc. - American Depositary Shares, each representing 8 ordinary s (BIDU) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 125.00 | 125.20 | 125.01 | -3.30 | 3.1M | 349 | 45B |
BIDU Dividend-Like Income Using Covered Calls
With BIDU at 125.01, 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% | 3.75 | 1.0 |
| 5% | 6.25 | 1.7 |
| 10% | 12.50 | 3.4 |
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 BIDU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 125.00 | 2.70 | 8 | 31.3 | 0.00 (0.0%) | |
| Dec 26 | 125.00 | 3.70 | 15 | 23.3 | 0.00 (0.0%) | |
| 5% Yield On BIDU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 125.00 | 2.70 | 8 | 31.3 | 0.00 (0.0%) | |
| Dec 26 | 125.00 | 3.70 | 15 | 23.3 | 0.00 (0.0%) | |
| 10% Yield On BIDU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 125.00 | 2.70 | 8 | 31.3 | 0.00 (0.0%) | |
| Dec 26 | 125.00 | 3.70 | 15 | 23.3 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Dec 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | NKTR dividend | |
| 2. | SPY dividend | 7. | TLT dividend | 2. | AVXL dividend | |
| 3. | IBIT dividend | 8. | SLV dividend | 3. | CTMX dividend | |
| 4. | IWM dividend | 9. | NFLX dividend | 4. | BE dividend | |
| 5. | QQQ dividend | 10. | TSLA dividend | 5. | OMER dividend | |
Want more examples? BIBL Dividend | BIIB Dividend
