ATHM Dividend Type Payments
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 Fri 4:16 PM ET):
Autohome Inc. American Depositary Shares, each representing four class A (ATHM) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
26.50 | 28.60 | 27.28 | +0.17 | 325K | 60 | 0.0B |
ATHM Dividend-Like Income Using Covered Calls
With ATHM at 27.28, 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% | 1.36 | 0.4 |
10% | 2.73 | 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 | 30.00 | 1.10 | 141 | 0.8 | 1.40 (5.1%) | |
Dec 19 | 30.00 | 1.15 | 232 | 0.5 | 1.40 (5.1%) |
5% Yield On ATHM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Sep 19 | 30.00 | 1.10 | 141 | 0.8 | 1.40 (5.1%) | |
Dec 19 | 30.00 | 1.15 | 232 | 0.5 | 1.40 (5.1%) |
10% Yield On ATHM Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Sep 19 | 30.00 | 1.10 | 141 | 0.8 | 1.40 (5.1%) |
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Want more examples? ATGE Dividend | ATI Dividend