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 Fri 4:16 PM ET):
| Futu Holdings Limited - American Depositary Shares (FUTU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 178.40 |
178.90 |
178.38 |
+7.69 |
2.9M |
190 |
1.9B |
FUTU Dividend-Like Income Using Covered Calls
With FUTU at 178.38, 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% |
5.35 |
1.5 |
| 5% |
8.92 |
2.4 |
| 10% |
17.84 |
4.9 |
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 |
| Nov 7 |
180.00 |
7.20 |
15 |
48.0 |
1.10 (0.6%) |
| Nov 14 |
180.00 |
8.90 |
22 |
40.5 |
1.10 (0.6%) |
| 5% Yield On FUTU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 7 |
180.00 |
7.20 |
15 |
48.0 |
1.10 (0.6%) |
| Nov 14 |
180.00 |
8.90 |
22 |
40.5 |
1.10 (0.6%) |
| 10% Yield On FUTU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 7 |
180.00 |
7.20 |
15 |
48.0 |
1.10 (0.6%) |
| Nov 14 |
180.00 |
8.90 |
22 |
40.5 |
1.10 (0.6%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
