ATHM Dividend Type Payments

Autohome Inc. American Depositary Shares, each representing four class A dividend

Although ATHM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Autohome Inc. American Depositary Shares, each representing four class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 1:00 PM ET):

Autohome Inc. American Depositary Shares, each representing four class A (ATHM)
Bid Ask Last Change Volume P/E Market Cap
27.35 27.41 27.37 +0.37 101K 53 0.0B

ATHM Dividend-Like Income Using Covered Calls

With ATHM at 27.37, 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% 0.82 0.2
5% 1.37 0.4
10% 2.74 0.7

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 ATHM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 27.50 1.50 241 0.6 0.09 (0.3%)
Jun 20 27.50 0.55 150 0.4 0.09 (0.3%)
5% Yield On ATHM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 27.50 1.50 241 0.6 0.09 (0.3%)
Feb 21 27.50 1.25 31 4.0 0.09 (0.3%)
10% Yield On ATHM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 21 27.50 1.25 31 4.0 0.09 (0.3%)
Mar 21 30.00 0.60 59 1.0 2.59 (9.5%)

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