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 1:10 PM ET):
| Trip.com Group Limited - American Depositary Shares (TCOM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 57.24 |
57.26 |
57.25 |
-3.23 |
6.5M |
10 |
29B |
TCOM Dividend-Like Income Using Covered Calls
With TCOM at 57.25, 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% |
1.72 |
0.5 |
| 5% |
2.86 |
0.8 |
| 10% |
5.73 |
1.6 |
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 TCOM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
60.00 |
4.30 |
135 |
3.2 |
2.74 (4.8%) |
| Sep 18 |
60.00 |
5.90 |
227 |
2.6 |
2.74 (4.8%) |
| 5% Yield On TCOM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
60.00 |
4.30 |
135 |
3.2 |
2.74 (4.8%) |
| Sep 18 |
60.00 |
5.90 |
227 |
2.6 |
2.74 (4.8%) |
| 10% Yield On TCOM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
60.00 |
4.30 |
135 |
3.2 |
2.74 (4.8%) |
| Sep 18 |
60.00 |
5.90 |
227 |
2.6 |
2.74 (4.8%) |
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