PDD Dividend Type Payments
Although PDD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on PDD Holdings Inc. - 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 Wed 4:16 PM ET):
| PDD Holdings Inc. - American Depositary Shares (PDD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 102.22 |
102.77 |
102.25 |
-0.28 |
4.1M |
44 |
129B |
PDD Dividend-Like Income Using Covered Calls
With PDD at 102.25, 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% |
3.07 |
0.8 |
| 5% |
5.11 |
1.4 |
| 10% |
10.23 |
2.8 |
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 PDD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
103.00 |
2.18 |
16 |
13.6 |
0.23 (0.2%) |
| Jul 11 |
103.00 |
2.76 |
24 |
11.5 |
0.23 (0.2%) |
| 5% Yield On PDD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
103.00 |
2.18 |
16 |
13.6 |
0.23 (0.2%) |
| Jul 11 |
103.00 |
2.76 |
24 |
11.5 |
0.23 (0.2%) |
| 10% Yield On PDD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jul 3 |
103.00 |
2.18 |
16 |
13.6 |
0.23 (0.2%) |
| Jul 11 |
103.00 |
2.76 |
24 |
11.5 |
0.23 (0.2%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
