FUTU Dividend Type Payments
Although FUTU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Futu Holdings Limited - 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 Wed 10:20 AM ET):
| Futu Holdings Limited - American Depositary Shares (FUTU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 168.00 |
168.43 |
168.27 |
-1.35 |
119K |
152 |
1.8B |
FUTU Dividend-Like Income Using Covered Calls
With FUTU at 168.27, 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% |
5.05 |
1.4 |
| 5% |
8.41 |
2.3 |
| 10% |
16.83 |
4.6 |
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 FUTU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
170.00 |
2.20 |
3 |
73.3 |
1.57 (0.9%) |
| Dec 12 |
170.00 |
4.45 |
10 |
44.5 |
1.57 (0.9%) |
| 5% Yield On FUTU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
170.00 |
2.20 |
3 |
73.3 |
1.57 (0.9%) |
| Dec 12 |
170.00 |
4.45 |
10 |
44.5 |
1.57 (0.9%) |
| 10% Yield On FUTU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 5 |
170.00 |
2.20 |
3 |
73.3 |
1.57 (0.9%) |
| Dec 12 |
170.00 |
4.45 |
10 |
44.5 |
1.57 (0.9%) |
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