CAN Dividend Type Payments
Although CAN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Canaan Inc. - American Depositary Shares 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):
| Canaan Inc. - American Depositary Shares (CAN) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 1.01 |
1.02 |
1.01 |
+0.09 |
19.7M |
- |
0.0B |
CAN Dividend-Like Income Using Covered Calls
With CAN at 1.01, 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% |
0.03 |
0.0 |
| 5% |
0.05 |
0.0 |
| 10% |
0.10 |
0.0 |
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 CAN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
1.50 |
0.05 |
50 |
0.1 |
0.48 (47.5%) |
| Apr 17 |
1.50 |
0.20 |
141 |
0.1 |
0.48 (47.5%) |
| 5% Yield On CAN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
1.50 |
0.05 |
50 |
0.1 |
0.48 (47.5%) |
| Apr 17 |
1.50 |
0.20 |
141 |
0.1 |
0.48 (47.5%) |
| 10% Yield On CAN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
1.50 |
0.05 |
50 |
0.1 |
0.48 (47.5%) |
| Apr 17 |
1.50 |
0.20 |
141 |
0.1 |
0.48 (47.5%) |
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