NTES Dividend
Although NTES has a dividend of 0.61 with an ex-dividend date of Aug 23, you can sell covered calls on NETEASE 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):
| NETEASE (NTES) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 199.01 | 202.89 | 200.25 | -0.40 | 1.2M | 24 | 26B |
NTES Dividend-Like Income Using Covered Calls
With NTES at 200.25, 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% | 6.01 | 1.6 |
| 5% | 10.01 | 2.7 |
| 10% | 20.03 | 5.5 |
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 NTES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 24 | 217.50 | 0.15 | 9 | 1.7 | 14.61 (7.3%) | |
| Aug 31 | 220.00 | 0.40 | 16 | 2.5 | 17.11 (8.5%) | |
| 5% Yield On NTES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 24 | 215.00 | 0.30 | 9 | 3.3 | 12.11 (6.0%) | |
| Aug 31 | 215.00 | 0.85 | 16 | 5.3 | 12.11 (6.0%) | |
| 10% Yield On NTES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 24 | 212.50 | 0.50 | 9 | 5.6 | 9.61 (4.8%) | |
| Aug 31 | 210.00 | 1.75 | 16 | 10.9 | 7.11 (3.6%) | |
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| Top 10 Open Interest For Sep 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | EEM dividend | 6. | GE dividend | 1. | AMAT dividend | |
| 2. | SPY dividend | 7. | GLD dividend | 2. | NVDA dividend | |
| 3. | SPX dividend | 8. | IWM dividend | 3. | UVXY dividend | |
| 4. | QQQ dividend | 9. | FB dividend | 4. | DE dividend | |
| 5. | XLF dividend | 10. | GDX dividend | 5. | AKRX dividend | |
Want more examples? NTEC Dividend | NTGQRE Dividend
