EDU Dividend Type Payments
Although EDU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on New Oriental Education & Technology Group, Inc. Sponsored ADR representi 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):
| New Oriental Education & Technology Group, Inc. Sponsored ADR representi (EDU) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 48.00 | 48.60 | 48.40 | +0.34 | 1.3M | 209 | 7.6B |
EDU Dividend-Like Income Using Covered Calls
With EDU at 48.40, 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% | 1.45 | 0.4 |
| 5% | 2.42 | 0.7 |
| 10% | 4.84 | 1.3 |
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 EDU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 50.00 | 2.15 | 64 | 3.4 | 1.40 (2.9%) | |
| Sep 19 | 50.00 | 1.55 | 36 | 4.3 | 1.40 (2.9%) | |
| 5% Yield On EDU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 50.00 | 2.15 | 64 | 3.4 | 1.40 (2.9%) | |
| Sep 19 | 50.00 | 1.55 | 36 | 4.3 | 1.40 (2.9%) | |
| 10% Yield On EDU Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 50.00 | 2.15 | 64 | 3.4 | 1.40 (2.9%) | |
| Sep 19 | 50.00 | 1.55 | 36 | 4.3 | 1.40 (2.9%) | |
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| Top 10 Open Interest For Sep 19 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | SLV dividend | 1. | ATYR dividend | |
| 2. | PCG dividend | 7. | FXI dividend | 2. | IREN dividend | |
| 3. | IWM dividend | 8. | QQQ dividend | 3. | KSS dividend | |
| 4. | EEM dividend | 9. | IBIT dividend | 4. | VKTX dividend | |
| 5. | SPY dividend | 10. | KWEB dividend | 5. | BBAI dividend | |
Want more examples? EDOW Dividend | EDV Dividend
