ATHM Dividend Type Payments

Autohome Inc. American Depositary Shares, each representing four class A dividend

Although ATHM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Autohome Inc. American Depositary Shares, each representing four class A 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):

Autohome Inc. American Depositary Shares, each representing four class A (ATHM)
Bid Ask Last Change Volume P/E Market Cap
25.94 27.50 27.65 +1.14 584K 52 0.0B

ATHM Dividend-Like Income Using Covered Calls

With ATHM at 27.65, 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% 0.83 0.2
5% 1.38 0.4
10% 2.77 0.8

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 ATHM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 27.50 1.50 246 0.6 0.00 (0.0%)
Jun 20 27.50 1.00 155 0.6 0.00 (0.0%)
5% Yield On ATHM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 27.50 1.50 246 0.6 0.00 (0.0%)
Jun 20 27.50 1.00 155 0.6 0.00 (0.0%)
10% Yield On ATHM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 20 30.00 1.20 155 0.8 2.50 (9.0%)
Feb 21 27.50 1.45 36 4.0 0.00 (0.0%)

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