EDU Dividend Type Payments

New Oriental Education & Technology Group, Inc. Sponsored ADR representi dividend

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 Tue 12:35 PM ET):

New Oriental Education & Technology Group, Inc. Sponsored ADR representi (EDU)
Bid Ask Last Change Volume P/E Market Cap
53.11 53.18 53.17 +1.16 281K 232 8.3B

EDU Dividend-Like Income Using Covered Calls

With EDU at 53.17, 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% 1.60 0.4
5% 2.66 0.7
10% 5.32 1.5

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 EDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 55.00 1.50 32 4.7 1.82 (3.4%)
Nov 21 55.00 0.30 4 7.5 1.82 (3.4%)
5% Yield On EDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 55.00 1.50 32 4.7 1.82 (3.4%)
Nov 21 55.00 0.30 4 7.5 1.82 (3.4%)
10% Yield On EDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 19 55.00 1.50 32 4.7 1.82 (3.4%)
Nov 21 55.00 0.30 4 7.5 1.82 (3.4%)

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