ZTO Dividend Type Payments

Although ZTO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on ZTO Express (Cayman), 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):

ZTO Express (Cayman), Inc ADS (ZTO)
Bid Ask Last Change Volume P/E Market Cap
19.23 19.79 19.66 +0.15 1.9M - 15B

ZTO Dividend-Like Income Using Covered Calls

With ZTO at 19.66, 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% 0.59 0.2
5% 0.98 0.3
10% 1.97 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 16 22.00 0.05 29 0.2 2.21 (11.2%)
Oct 18 23.00 0.20 92 0.2 3.21 (16.3%)
5% Yield On ZTO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 21.00 0.15 29 0.5 1.21 (6.2%)
Oct 18 22.00 0.40 92 0.4 2.21 (11.2%)
10% Yield On ZTO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 16 20.00 0.55 29 1.9 0.21 (1.1%)
Oct 18 21.00 0.70 92 0.8 1.21 (6.2%)

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Top 10 Open Interest For Aug 16 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
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3.EEM dividend 8.BAC dividend   3.ITCI dividend
4.SPX dividend 9.GLD dividend   4.TWTR dividend
5.GDX dividend 10.EWZ dividend   5.CRWD dividend

Want more examples? ZSL Dividend | ZTS Dividend