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 Thu 4:16 PM ET):
PDD Holdings Inc. - American Depositary Shares (PDD) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
116.20 |
116.40 |
116.25 |
-0.41 |
6.6M |
108 |
146B |
PDD Dividend-Like Income Using Covered Calls
With PDD at 116.25, 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% |
3.49 |
1.0 |
5% |
5.81 |
1.6 |
10% |
11.63 |
3.2 |
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 |
Apr 5 |
116.00 |
2.44 |
9 |
22.7 |
0.00 (0.0%) |
Apr 12 |
116.00 |
3.55 |
16 |
19.7 |
0.00 (0.0%) |
5% Yield On PDD Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Apr 5 |
116.00 |
2.44 |
9 |
22.7 |
0.00 (0.0%) |
Apr 12 |
116.00 |
3.55 |
16 |
19.7 |
0.00 (0.0%) |
10% Yield On PDD Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Apr 5 |
116.00 |
2.44 |
9 |
22.7 |
0.00 (0.0%) |
Apr 12 |
116.00 |
3.55 |
16 |
19.7 |
0.00 (0.0%) |
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