GDS Dividend Type Payments
Although GDS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on GDS 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 Tue 12:00 PM ET):
| GDS Holdings Limited - American Depositary Shares (GDS) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 35.01 |
35.13 |
35.12 |
-0.93 |
273K |
- |
0.0B |
GDS Dividend-Like Income Using Covered Calls
With GDS at 35.12, 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% |
1.05 |
0.3 |
| 5% |
1.76 |
0.5 |
| 10% |
3.51 |
1.0 |
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 GDS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
35.00 |
1.55 |
25 |
5.7 |
0.00 (0.0%) |
| Jun 18 |
35.00 |
5.30 |
178 |
2.9 |
0.00 (0.0%) |
| 5% Yield On GDS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
35.00 |
1.55 |
25 |
5.7 |
0.00 (0.0%) |
| Jun 18 |
35.00 |
5.30 |
178 |
2.9 |
0.00 (0.0%) |
| 10% Yield On GDS Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
35.00 |
1.55 |
25 |
5.7 |
0.00 (0.0%) |
| Jun 18 |
35.00 |
5.30 |
178 |
2.9 |
0.00 (0.0%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
