ZTO Dividend Type Payments

Although ZTO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ZTO EXPRESS CAYMAN to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

ZTO EXPRESS CAYMAN (ZTO)
Bid Ask Last Change Volume P/E Market Cap
19.30 19.43 19.35 -1.72 4.8M 32 15B

ZTO Dividend-Like Income Using Covered Calls

With ZTO at 19.35, 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% 0.58 0.2
5% 0.97 0.3
10% 1.94 0.5

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 ZTO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 20.00 0.05 4 1.3 0.57 (2.9%)
Sep 21 22.00 0.15 39 0.4 2.57 (13.3%)
5% Yield On ZTO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 20.00 0.05 4 1.3 0.57 (2.9%)
Sep 21 22.00 0.15 39 0.4 2.57 (13.3%)
10% Yield On ZTO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 20.00 0.05 4 1.3 0.57 (2.9%)
Sep 21 21.00 0.30 39 0.8 1.57 (8.1%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.M dividend
2.EEM dividend 7.AABA dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.FB dividend   4.CGC dividend
5.XLF dividend 10.GLD dividend   5.A dividend

Want more examples? ZSL Dividend | ZTS Dividend