JD Dividend Type Payments

JD.com, Inc ADS dividend

Although JD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on JD.com, 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):

JD.com, Inc ADS (JD)
Bid Ask Last Change Volume P/E Market Cap
29.08 29.16 29.06 -0.06 12.9M - 27B

JD Dividend-Like Income Using Covered Calls

With JD at 29.06, 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% 0.87 0.2
5% 1.45 0.4
10% 2.91 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 JD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 28 32.50 0.02 8 0.3 3.34 (11.5%)
Jul 5 33.00 0.05 15 0.3 3.84 (13.2%)
5% Yield On JD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 28 31.50 0.05 8 0.6 2.34 (8.1%)
Jul 5 32.50 0.08 15 0.5 3.34 (11.5%)
10% Yield On JD Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 28 31.00 0.09 8 1.1 1.84 (6.3%)
Jul 5 31.50 0.17 15 1.1 2.34 (8.1%)

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Want more examples? JCP Dividend | JDIV Dividend