DAO Dividend Type Payments

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

Youdao, Inc. American Depositary Shares, each representing one Class A O (DAO)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
10.83	11.25	10.82	-0.30	155K	41	0.0B

DAO Dividend-Like Income Using Covered Calls

With DAO at 10.82, 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%	0.32	0.1
5%	0.54	0.1
10%	1.08	0.3

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 DAO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	12.50	0.15	53	0.3	1.25 (11.6%)
May 15	12.50	0.30	200	0.2	1.25 (11.6%)

5% Yield On DAO Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	12.50	0.15	53	0.3	1.25 (11.6%)
May 15	12.50	0.30	200	0.2	1.25 (11.6%)

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Want more examples? DAN Dividend | DAR Dividend