IQ Dividend Type Payments
Although IQ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iQIYI, Inc. - American Depositary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
iQIYI, Inc. - American Depositary Shares (IQ) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
3.98 |
3.99 |
3.98 |
-0.02 |
5.0M |
108 |
0.0B |
IQ Dividend-Like Income Using Covered Calls
With IQ at 3.98, 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% |
0.12 |
0.0 |
5% |
0.20 |
0.1 |
10% |
0.40 |
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 IQ Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Mar 22 |
4.00 |
0.08 |
5 |
1.6 |
0.01 (0.3%) |
Mar 28 |
4.00 |
0.13 |
11 |
1.2 |
0.01 (0.3%) |
5% Yield On IQ Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Mar 22 |
4.00 |
0.08 |
5 |
1.6 |
0.01 (0.3%) |
Mar 28 |
4.00 |
0.13 |
11 |
1.2 |
0.01 (0.3%) |
10% Yield On IQ Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Mar 22 |
4.00 |
0.08 |
5 |
1.6 |
0.01 (0.3%) |
Mar 28 |
4.00 |
0.13 |
11 |
1.2 |
0.01 (0.3%) |
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