WRD Dividend Type Payments
Although WRD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on WeRide 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 Mon 4:16 PM ET):
| WeRide Inc. - American Depositary Shares (WRD) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 11.11 |
11.15 |
11.16 |
+0.52 |
6.0M |
- |
0.0B |
WRD Dividend-Like Income Using Covered Calls
With WRD at 11.16, 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% |
0.33 |
0.1 |
| 5% |
0.56 |
0.2 |
| 10% |
1.12 |
0.3 |
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 WRD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
12.50 |
0.85 |
54 |
1.6 |
1.35 (12.1%) |
| Nov 21 |
12.50 |
0.50 |
26 |
1.9 |
1.35 (12.1%) |
| 5% Yield On WRD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
12.50 |
0.85 |
54 |
1.6 |
1.35 (12.1%) |
| Nov 21 |
12.50 |
0.50 |
26 |
1.9 |
1.35 (12.1%) |
| 10% Yield On WRD Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
12.50 |
0.85 |
54 |
1.6 |
1.35 (12.1%) |
| Nov 21 |
12.50 |
0.50 |
26 |
1.9 |
1.35 (12.1%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
