KC Dividend Type Payments
Although KC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Kingsoft Cloud Holdings Limited - 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 10:15 AM ET):
| Kingsoft Cloud Holdings Limited - American Depositary Shares (KC) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 13.00 |
13.02 |
13.02 |
-0.22 |
205K |
- |
0.3B |
KC Dividend-Like Income Using Covered Calls
With KC at 13.02, 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% |
0.39 |
0.1 |
| 5% |
0.65 |
0.2 |
| 10% |
1.30 |
0.4 |
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 KC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
15.00 |
0.75 |
37 |
2.0 |
1.98 (15.2%) |
| May 15 |
15.00 |
2.10 |
212 |
1.0 |
1.98 (15.2%) |
| 5% Yield On KC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
15.00 |
0.75 |
37 |
2.0 |
1.98 (15.2%) |
| May 15 |
15.00 |
2.10 |
212 |
1.0 |
1.98 (15.2%) |
| 10% Yield On KC Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
15.00 |
0.75 |
37 |
2.0 |
1.98 (15.2%) |
| May 15 |
15.00 |
2.10 |
212 |
1.0 |
1.98 (15.2%) |
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