NTES Dividend Type Payments
Although NTES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NetEase, Inc. - American Depositary Shares, each representing 5 ordinary to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
NetEase, Inc. - American Depositary Shares, each representing 5 ordinary (NTES) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
131.03 | 133.50 | 132.61 | -0.52 | 512K | 96 | 81B |
NTES Dividend-Like Income Using Covered Calls
With NTES at 132.61, 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% | 3.98 | 1.1 |
5% | 6.63 | 1.8 |
10% | 13.26 | 3.6 |
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 | |
Aug 15 | 135.00 | 4.50 | 31 | 14.5 | 1.50 (1.1%) | |
Jul 18 | 135.00 | 0.50 | 3 | 16.7 | 1.50 (1.1%) |
5% Yield On NTES Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 135.00 | 4.50 | 31 | 14.5 | 1.50 (1.1%) | |
Jul 18 | 135.00 | 0.50 | 3 | 16.7 | 1.50 (1.1%) |
10% Yield On NTES Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Aug 15 | 135.00 | 4.50 | 31 | 14.5 | 1.50 (1.1%) | |
Jul 18 | 135.00 | 0.50 | 3 | 16.7 | 1.50 (1.1%) |
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Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | IWM dividend | 1. | METC dividend | |
2. | SLV dividend | 7. | GLD dividend | 2. | CELC dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | APLD dividend | |
4. | TSLA dividend | 9. | QQQ dividend | 4. | ELV dividend | |
5. | AAPL dividend | 10. | AMZN dividend | 5. | SEDG dividend |
Want more examples? NTCT Dividend | NTGR Dividend