TCOM Dividend Type Payments
Although TCOM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Trip.com Group Limited - 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 Mon 2:25 PM ET):
| Trip.com Group Limited - American Depositary Shares (TCOM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 70.91 |
70.93 |
70.91 |
+0.11 |
856K |
11 |
34B |
TCOM Dividend-Like Income Using Covered Calls
With TCOM at 70.91, 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% |
2.13 |
0.6 |
| 5% |
3.55 |
1.0 |
| 10% |
7.09 |
1.9 |
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 TCOM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
75.00 |
0.75 |
33 |
2.3 |
4.07 (5.7%) |
| Mar 20 |
75.00 |
3.00 |
96 |
3.1 |
4.07 (5.7%) |
| 5% Yield On TCOM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
75.00 |
0.75 |
33 |
2.3 |
4.07 (5.7%) |
| Mar 20 |
75.00 |
3.00 |
96 |
3.1 |
4.07 (5.7%) |
| 10% Yield On TCOM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
75.00 |
0.75 |
33 |
2.3 |
4.07 (5.7%) |
| Mar 20 |
75.00 |
3.00 |
96 |
3.1 |
4.07 (5.7%) |
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