BABA Dividend Type Payments
Although BABA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Alibaba Group Holding Limited American Depositary Shares each representi 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):
| Alibaba Group Holding Limited American Depositary Shares each representi (BABA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 120.29 | 120.34 | 120.23 | +2.93 | 26.6M | 127 | 318B |
BABA Dividend-Like Income Using Covered Calls
With BABA at 120.23, 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% | 3.61 | 1.0 |
| 5% | 6.01 | 1.6 |
| 10% | 12.02 | 3.3 |
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 BABA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 120.00 | 3.55 | 15 | 21.4 | 0.00 (0.0%) | |
| Aug 8 | 120.00 | 4.50 | 22 | 18.9 | 0.00 (0.0%) | |
| 5% Yield On BABA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 120.00 | 3.55 | 15 | 21.4 | 0.00 (0.0%) | |
| Aug 8 | 120.00 | 4.50 | 22 | 18.9 | 0.00 (0.0%) | |
| 10% Yield On BABA Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 120.00 | 3.55 | 15 | 21.4 | 0.00 (0.0%) | |
| Aug 8 | 120.00 | 4.50 | 22 | 18.9 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Aug 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV dividend | 6. | IBIT dividend | 1. | CELC dividend | |
| 2. | NVDA dividend | 7. | TSLA dividend | 2. | CRML dividend | |
| 3. | GLD dividend | 8. | AMZN dividend | 3. | NFE dividend | |
| 4. | IWM dividend | 9. | AAPL dividend | 4. | ARES dividend | |
| 5. | SPY dividend | 10. | SMCI dividend | 5. | MBX dividend | |
Want more examples? BAB Dividend | BAC Dividend
