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 Fri 4:16 PM ET):
| Trip.com Group Limited - American Depositary Shares (TCOM) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 71.79 |
72.45 |
72.03 |
-2.49 |
1.9M |
21 |
36B |
TCOM Dividend-Like Income Using Covered Calls
With TCOM at 72.03, 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% |
2.16 |
0.6 |
| 5% |
3.60 |
1.0 |
| 10% |
7.20 |
2.0 |
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 TCOM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
75.00 |
2.35 |
36 |
6.5 |
2.55 (3.5%) |
| Nov 21 |
75.00 |
1.05 |
8 |
13.1 |
2.55 (3.5%) |
| 5% Yield On TCOM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
75.00 |
2.35 |
36 |
6.5 |
2.55 (3.5%) |
| Nov 21 |
75.00 |
1.05 |
8 |
13.1 |
2.55 (3.5%) |
| 10% Yield On TCOM Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
75.00 |
2.35 |
36 |
6.5 |
2.55 (3.5%) |
| Nov 21 |
75.00 |
1.05 |
8 |
13.1 |
2.55 (3.5%) |
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