GDS Dividend Type Payments

Although GDS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on GDS Holdings Ltd ADS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 9:55 AM ET):

GDS Holdings Ltd ADS (GDS)
Bid Ask Last Change Volume P/E Market Cap
29.46 29.57 29.52 +0.22 302K - 1.5B

GDS Dividend-Like Income Using Covered Calls

With GDS at 29.52, 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% 0.89 0.2
5% 1.48 0.4
10% 2.95 0.8

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 GDS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 35.00 0.35 24 1.5 5.43 (18.4%)
Apr 18 40.00 0.25 58 0.4 10.43 (35.3%)
5% Yield On GDS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 35.00 0.35 24 1.5 5.43 (18.4%)
Apr 18 40.00 0.25 58 0.4 10.43 (35.3%)
10% Yield On GDS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 35.00 0.35 24 1.5 5.43 (18.4%)
Apr 18 35.00 0.90 58 1.6 5.43 (18.4%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.ROKU dividend
2.EEM dividend 7.GE dividend   2.VIPS dividend
3.SPY dividend 8.BAC dividend   3.FSLR dividend
4.QQQ dividend 9.XOP dividend   4.IQ dividend
5.FXI dividend 10.LLY dividend   5.DBX dividend

Want more examples? GDOT Dividend | GDX Dividend