VIPS Dividend Type Payments
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 |
15.77 | 15.78 | 15.73 | -0.01 | 3.4M | 1.5 | 0.0B |
VIPS Dividend-Like Income Using Covered Calls
With VIPS at 15.73, 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% | 0.47 | 0.1 |
5% | 0.79 | 0.2 |
10% | 1.57 | 0.4 |
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 | |
Nov 15 | 17.00 | 0.50 | 204 | 0.2 | 1.22 (7.8%) | |
Aug 16 | 16.00 | 1.35 | 113 | 1.2 | 0.22 (1.4%) |
5% Yield On VIPS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 17.00 | 0.50 | 204 | 0.2 | 1.22 (7.8%) | |
Aug 16 | 16.00 | 1.35 | 113 | 1.2 | 0.22 (1.4%) |
10% Yield On VIPS Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 18.00 | 1.25 | 204 | 0.6 | 2.22 (14.1%) | |
Aug 16 | 16.00 | 1.35 | 113 | 1.2 | 0.22 (1.4%) |
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Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | IWM dividend | 6. | EEM dividend | 1. | WOLF dividend | |
2. | HYG dividend | 7. | KWEB dividend | 2. | FSLY dividend | |
3. | QQQ dividend | 8. | SLV dividend | 3. | ENVX dividend | |
4. | SPY dividend | 9. | TSLA dividend | 4. | NOVA dividend | |
5. | FXI dividend | 10. | NVDA dividend | 5. | COIN dividend |
Want more examples? VIOV Dividend | VIR Dividend