NTES Dividend Type Payments
Although NTES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Netease, Inc ADS 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, Inc ADS (NTES) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 238.00 | 242.60 | 240.02 | +3.02 | 678K | - | 17B |
NTES Dividend-Like Income Using Covered Calls
With NTES at 240.02, 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% | 7.20 | 2.0 |
| 5% | 12.00 | 3.3 |
| 10% | 24.00 | 6.6 |
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 | |
| Mar 29 | 255.00 | 0.25 | 9 | 2.8 | 12.40 (5.2%) | |
| Apr 5 | 260.00 | 0.45 | 16 | 2.8 | 17.40 (7.2%) | |
| 5% Yield On NTES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 29 | 252.50 | 0.45 | 9 | 5.0 | 9.90 (4.1%) | |
| Apr 5 | 257.50 | 0.70 | 16 | 4.4 | 14.90 (6.2%) | |
| 10% Yield On NTES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Mar 29 | 250.00 | 0.80 | 9 | 8.9 | 7.40 (3.1%) | |
| Apr 5 | 252.50 | 1.45 | 16 | 9.1 | 9.90 (4.1%) | |
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| Top 10 Open Interest For Apr 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SPY dividend | 6. | FXI dividend | 1. | NKE dividend | |
| 2. | EEM dividend | 7. | BMY dividend | 2. | MO dividend | |
| 3. | SPX dividend | 8. | AAPL dividend | 3. | AMD dividend | |
| 4. | QQQ dividend | 9. | IWM dividend | 4. | CGC dividend | |
| 5. | USO dividend | 10. | NIO dividend | 5. | BCRX dividend | |
Want more examples? NTEC Dividend | NTGR Dividend
