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 Thu 4:16 PM ET):
iQIYI, Inc. - American Depositary Shares (IQ) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
5.08 |
5.17 |
5.09 |
+0.09 |
11.1M |
128 |
0.0B |
IQ Dividend-Like Income Using Covered Calls
With IQ at 5.09, 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% |
0.15 |
0.0 |
5% |
0.25 |
0.1 |
10% |
0.51 |
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 |
Jun 7 |
5.50 |
0.20 |
37 |
0.5 |
0.33 (6.5%) |
May 10 |
5.50 |
0.03 |
9 |
0.3 |
0.33 (6.5%) |
5% Yield On IQ Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
5.50 |
0.20 |
37 |
0.5 |
0.33 (6.5%) |
May 10 |
5.50 |
0.03 |
9 |
0.3 |
0.33 (6.5%) |
10% Yield On IQ Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
5.50 |
0.20 |
37 |
0.5 |
0.33 (6.5%) |
May 10 |
5.50 |
0.03 |
9 |
0.3 |
0.33 (6.5%) |
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