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 Tue 10:45 AM ET):

Autohome Inc. American Depositary Shares, each representing four class A (ATHM)
Bid Ask Last Change Volume P/E Market Cap
27.56 27.62 27.56 +0.52 68K 59 0.0B

ATHM Dividend-Like Income Using Covered Calls

With ATHM at 27.56, 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% 2.76 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
May 16 27.50 0.55 25 1.7 0.00 (0.0%)
Sep 19 27.50 1.35 151 0.8 0.00 (0.0%)
5% Yield On ATHM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 27.50 0.55 25 1.7 0.00 (0.0%)
Sep 19 27.50 1.35 151 0.8 0.00 (0.0%)
10% Yield On ATHM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 27.50 0.55 25 1.7 0.00 (0.0%)
Sep 19 27.50 1.35 151 0.8 0.00 (0.0%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For May 16 Expiration     Top 5 High Yield
1.NVDA dividend 6.GLD dividend   1.STLA dividend
2.SPY dividend 7.IWM dividend   2.BHVN dividend
3.TLT dividend 8.FXI dividend   3.VRT dividend
4.SLV dividend 9.TSLA dividend   4.UPST dividend
5.QQQ dividend 10.IBIT dividend   5.APLD dividend

Want more examples? ATGE Dividend | ATI Dividend