BIDU Dividend Type Payments

Baidu, Inc. - American Depositary Shares, each representing 8 ordinary s dividend

Although BIDU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Baidu, Inc. - American Depositary Shares, each representing 8 ordinary s to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

Baidu, Inc. - American Depositary Shares, each representing 8 ordinary s (BIDU)
Bid Ask Last Change Volume P/E Market Cap
82.97 83.18 82.98 +0.39 2.3M 73 29B

BIDU Dividend-Like Income Using Covered Calls

With BIDU at 82.98, 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% 2.49 0.7
5% 4.15 1.1
10% 8.30 2.3

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 BIDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 83.00 2.95 12 23.1 0.00 (0.0%)
May 9 100.00 0.19 19 1.0 16.82 (20.3%)
5% Yield On BIDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 83.00 2.95 12 23.1 0.00 (0.0%)
May 9 83.00 2.42 19 11.8 0.00 (0.0%)
10% Yield On BIDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 2 83.00 2.95 12 23.1 0.00 (0.0%)
May 9 83.00 2.42 19 11.8 0.00 (0.0%)

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