DQ Dividend Type Payments

DAQO New Energy Corp. American Depositary Shares, each representing five dividend

Although DQ has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on DAQO New Energy Corp. American Depositary Shares, each representing five to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:45 AM ET):

DAQO New Energy Corp. American Depositary Shares, each representing five (DQ)
Bid Ask Last Change Volume P/E Market Cap
19.59 19.67 19.59 +0.53 146K - 33B

DQ Dividend-Like Income Using Covered Calls

With DQ at 19.59, 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% 0.59 0.2
5% 0.98 0.3
10% 1.96 0.5

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 DQ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 4 20.00 0.90 19 4.7 0.33 (1.7%)
Apr 11 20.00 1.15 26 4.4 0.33 (1.7%)
5% Yield On DQ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 4 20.00 0.90 19 4.7 0.33 (1.7%)
Apr 11 20.00 1.15 26 4.4 0.33 (1.7%)
10% Yield On DQ Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 4 20.00 0.90 19 4.7 0.33 (1.7%)
Apr 11 20.00 1.15 26 4.4 0.33 (1.7%)

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