NIO Dividend Type Payments
Although NIO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NIO Inc. American depositary shares, each representing one Class A ordi to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:05 PM ET):
NIO Inc. American depositary shares, each representing one Class A ordi (NIO) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
5.67 |
5.68 |
5.67 |
-0.27 |
41.7M |
- |
6.6B |
NIO Dividend-Like Income Using Covered Calls
With NIO at 5.67, 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% |
0.17 |
0.0 |
5% |
0.28 |
0.1 |
10% |
0.57 |
0.2 |
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 NIO Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
6.00 |
0.44 |
38 |
1.2 |
0.32 (5.6%) |
Oct 4 |
6.00 |
0.18 |
10 |
1.8 |
0.32 (5.6%) |
5% Yield On NIO Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
6.00 |
0.44 |
38 |
1.2 |
0.32 (5.6%) |
Oct 4 |
6.00 |
0.18 |
10 |
1.8 |
0.32 (5.6%) |
10% Yield On NIO Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Nov 1 |
6.00 |
0.44 |
38 |
1.2 |
0.32 (5.6%) |
Oct 4 |
6.00 |
0.18 |
10 |
1.8 |
0.32 (5.6%) |
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