VIPS Dividend Type Payments

VIPSHOP HOLDINGS dividend

Although VIPS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VIPSHOP HOLDINGS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:00 AM ET):

VIPSHOP HOLDINGS (VIPS)
Bid Ask Last Change Volume P/E Market Cap
5.30 5.31 5.31 +0.25 827K 11 3.3B

VIPS Dividend-Like Income Using Covered Calls

With VIPS at 5.31, here's a table showing how big the annual "dividend" (ie. 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% 0.16 0.0
5% 0.27 0.1
10% 0.53 0.1

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
Oct 26 5.50 0.05 5 1.0 0.19 (3.6%)
Nov 2 5.50 0.10 12 0.8 0.19 (3.6%)
5% Yield On VIPS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 5.50 0.05 5 1.0 0.19 (3.6%)
Nov 2 5.50 0.10 12 0.8 0.19 (3.6%)
10% Yield On VIPS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 26 5.50 0.05 5 1.0 0.19 (3.6%)
Nov 2 5.50 0.10 12 0.8 0.19 (3.6%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.SNAP dividend
2.EWZ dividend 7.VXX dividend   2.UVXY dividend
3.EEM dividend 8.FXI dividend   3.AMD dividend
4.PBR dividend 9.IWM dividend   4.TWTR dividend
5.QQQ dividend 10.BAC dividend   5.AKS dividend

Want more examples? VIOV Dividend | VIRT Dividend