VIPS Dividend Type Payments

Vipshop Holdings Limited American Depositary Shares, each representing t dividend

Although VIPS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Vipshop Holdings Limited American Depositary Shares, each representing t to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Vipshop Holdings Limited American Depositary Shares, each representing t (VIPS)
Bid Ask Last Change Volume P/E Market Cap
18.51 18.85 18.80 -0.01 2.5M 2.0 0.0B

VIPS Dividend-Like Income Using Covered Calls

With VIPS at 18.80, 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% 0.56 0.2
5% 0.94 0.3
10% 1.88 0.5

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 VIPS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 19.00 1.15 64 1.8 0.15 (0.8%)
Nov 21 19.00 0.80 36 2.2 0.15 (0.8%)
5% Yield On VIPS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 19.00 1.15 64 1.8 0.15 (0.8%)
Nov 21 19.00 0.80 36 2.2 0.15 (0.8%)
10% Yield On VIPS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 19.00 1.15 64 1.8 0.15 (0.8%)
Nov 21 19.00 0.80 36 2.2 0.15 (0.8%)

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