XPEV Dividend Type Payments
Although XPEV has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on XPeng Inc. American depositary shares, each representing two Class A ord 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):
| XPeng Inc. American depositary shares, each representing two Class A ord (XPEV) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 9.04 |
9.07 |
9.06 |
-0.34 |
16.4M |
- |
0.0B |
XPEV Dividend-Like Income Using Covered Calls
With XPEV at 9.06, 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% |
0.27 |
0.1 |
| 5% |
0.45 |
0.1 |
| 10% |
0.91 |
0.2 |
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 XPEV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 7 |
10.00 |
0.51 |
36 |
1.4 |
0.93 (10.3%) |
| May 10 |
10.00 |
0.09 |
8 |
1.1 |
0.93 (10.3%) |
| 5% Yield On XPEV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 7 |
10.00 |
0.51 |
36 |
1.4 |
0.93 (10.3%) |
| May 10 |
10.00 |
0.09 |
8 |
1.1 |
0.93 (10.3%) |
| 10% Yield On XPEV Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 7 |
10.00 |
0.51 |
36 |
1.4 |
0.93 (10.3%) |
| May 10 |
10.00 |
0.09 |
8 |
1.1 |
0.93 (10.3%) |
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