WUBA Dividend Type Payments

Although WUBA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on 58. COM, Inc 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):

58. COM, Inc (WUBA)
Bid Ask Last Change Volume P/E Market Cap
56.50 57.40 57.31 +0.09 502K 59 8.5B

WUBA Dividend-Like Income Using Covered Calls

With WUBA at 57.31, 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% 1.72 0.5
5% 2.87 0.8
10% 5.73 1.6

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 WUBA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 65.00 0.30 26 1.2 7.60 (13.3%)
Oct 18 75.00 0.45 89 0.5 17.60 (30.7%)
5% Yield On WUBA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 65.00 0.30 26 1.2 7.60 (13.3%)
Oct 18 70.00 0.85 89 1.0 12.60 (22.0%)
10% Yield On WUBA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 60.00 1.25 26 4.8 2.60 (4.5%)
Oct 18 65.00 1.80 89 2.0 7.60 (13.3%)

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Top 10 Open Interest For Aug 16 Expiration     Top 5 High Yield
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Want more examples? WU Dividend | WWD Dividend