YY Dividend Type Payments

YY, Inc ADS dividend

Although YY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on YY, Inc ADS 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):

YY, Inc ADS (YY)
Bid Ask Last Change Volume P/E Market Cap
65.50 66.75 65.63 +0.06 600K - 0.0B

YY Dividend-Like Income Using Covered Calls

With YY at 65.63, 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% 1.97 0.5
5% 3.28 0.9
10% 6.56 1.8

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 YY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 75.00 0.05 8 0.6 8.25 (12.6%)
Dec 28 75.00 0.10 15 0.7 8.25 (12.6%)
5% Yield On YY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 72.50 0.10 8 1.3 5.75 (8.8%)
Dec 28 74.00 0.15 15 1.0 7.25 (11.0%)
10% Yield On YY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 71.50 0.15 8 1.9 4.75 (7.2%)
Dec 28 71.50 0.45 15 3.0 4.75 (7.2%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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Want more examples? YXI Dividend | YYY Dividend