TCOM Dividend Type Payments
Although TCOM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Trip.com Group 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 4:16 PM ET):
| Trip.com Group Limited - American Depositary Shares (TCOM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 76.60 |
76.87 |
76.79 |
+0.21 |
4.3M |
21 |
37B |
TCOM Dividend-Like Income Using Covered Calls
With TCOM at 76.79, 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% |
2.30 |
0.6 |
| 5% |
3.84 |
1.1 |
| 10% |
7.68 |
2.1 |
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 TCOM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
80.00 |
0.65 |
31 |
2.1 |
3.13 (4.1%) |
| Sep 19 |
80.00 |
0.10 |
3 |
3.3 |
3.13 (4.1%) |
| 5% Yield On TCOM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
80.00 |
0.65 |
31 |
2.1 |
3.13 (4.1%) |
| Sep 19 |
80.00 |
0.10 |
3 |
3.3 |
3.13 (4.1%) |
| 10% Yield On TCOM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
85.00 |
0.80 |
31 |
2.6 |
8.13 (10.6%) |
| Sep 19 |
80.00 |
0.10 |
3 |
3.3 |
3.13 (4.1%) |
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