GSUM Dividend Type Payments

Although GSUM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Gridsum Holding, Inc ADS 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):

Gridsum Holding, Inc ADS (GSUM)
Bid Ask Last Change Volume P/E Market Cap
3.67 3.76 3.71 +0.12 251K - 0.1B

GSUM Dividend-Like Income Using Covered Calls

With GSUM at 3.71, 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% 0.11 0.0
5% 0.19 0.1
10% 0.37 0.1

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 GSUM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 5.00 0.05 85 0.1 1.24 (33.4%)
5% Yield On GSUM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 5.00 0.05 85 0.1 1.24 (33.4%)

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Want more examples? GSSC Dividend | GSVC Dividend