BIDU Dividend Type Payments

BAIDU dividend

Although BIDU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BAIDU to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:50 PM ET):

BAIDU (BIDU)
Bid Ask Last Change Volume P/E Market Cap
215.82 215.89 215.85 -1.72 2.0M 20 76B

BIDU Dividend-Like Income Using Covered Calls

With BIDU at 215.85, here's a table showing how big the annual "dividend" (ie. 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% 6.48 1.8
5% 10.79 3.0
10% 21.59 5.9

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 BIDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 232.50 0.10 4 2.5 16.61 (7.7%)
Aug 24 237.50 0.29 11 2.6 21.61 (10.0%)
5% Yield On BIDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 230.00 0.15 4 3.8 14.11 (6.5%)
Aug 24 235.00 0.40 11 3.6 19.11 (8.9%)
10% Yield On BIDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 225.00 0.39 4 9.8 9.11 (4.2%)
Aug 24 230.00 0.75 11 6.8 14.11 (6.5%)

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Want more examples? BID Dividend | BIG Dividend