BZUN Dividend Type Payments

Although BZUN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on BAOZUN INC ADS 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):

BAOZUN INC ADS (BZUN)
Bid Ask Last Change Volume P/E Market Cap
46.70 48.37 48.22 +1.72 1.8M 81 2.6B

BZUN Dividend-Like Income Using Covered Calls

With BZUN at 48.22, 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% 1.45 0.4
5% 2.41 0.7
10% 4.82 1.3

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 BZUN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 60.00 0.25 30 0.8 11.63 (24.1%)
Jan 18 70.00 1.00 121 0.8 21.63 (44.9%)
5% Yield On BZUN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 60.00 0.25 30 0.8 11.63 (24.1%)
Jan 18 70.00 1.00 121 0.8 21.63 (44.9%)
10% Yield On BZUN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 55.00 0.75 30 2.5 6.63 (13.7%)
Jan 18 65.00 1.60 121 1.3 16.63 (34.5%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.FTV dividend   1.TLRY dividend
2.EEM dividend 7.FXI dividend   2.GERN dividend
3.SPX dividend 8.BABA dividend   3.TGTX dividend
4.MU dividend 9.USO dividend   4.CRON dividend
5.AMD dividend 10.GLD dividend   5.MU dividend

Want more examples? BZQ Dividend | C Dividend