BIDU Dividend Type Payments
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 Wed 12:05 PM ET):
| Baidu, Inc. - American Depositary Shares, each representing 8 ordinary s (BIDU) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 121.95 | 122.09 | 122.03 | +2.08 | 2.4M | 90 | 42B |
BIDU Dividend-Like Income Using Covered Calls
With BIDU at 122.03, 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% | 3.66 | 1.0 |
| 5% | 6.10 | 1.7 |
| 10% | 12.20 | 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 BIDU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 7 | 122.00 | 6.65 | 24 | 27.3 | 0.00 (0.0%) | |
| Nov 14 | 122.00 | 7.35 | 31 | 23.4 | 0.00 (0.0%) | |
| 5% Yield On BIDU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 7 | 122.00 | 6.65 | 24 | 27.3 | 0.00 (0.0%) | |
| Nov 14 | 122.00 | 7.35 | 31 | 23.4 | 0.00 (0.0%) | |
| 10% Yield On BIDU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Nov 7 | 122.00 | 6.65 | 24 | 27.3 | 0.00 (0.0%) | |
| Nov 14 | 122.00 | 7.35 | 31 | 23.4 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Oct 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | INTC dividend | 1. | ABAT dividend | |
| 2. | IBIT dividend | 7. | SLV dividend | 2. | AREC dividend | |
| 3. | SPY dividend | 8. | AMZN dividend | 3. | NB dividend | |
| 4. | GLD dividend | 9. | QQQ dividend | 4. | POWI dividend | |
| 5. | TSLA dividend | 10. | OPEN dividend | 5. | METC dividend | |
Want more examples? BIBL Dividend | BIIB Dividend
