BIDU Dividend Type Payments

Baidu, Inc. - American Depositary Shares, each representing 8 ordinary s dividend

Although BIDU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Baidu, Inc. - American Depositary Shares, each representing 8 ordinary s to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:30 AM ET):

Baidu, Inc. - American Depositary Shares, each representing 8 ordinary s (BIDU)
Bid Ask Last Change Volume P/E Market Cap
93.47 93.49 93.49 -1.28 1.9M 91 33B

BIDU Dividend-Like Income Using Covered Calls

With BIDU at 93.49, 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% 2.80 0.8
5% 4.67 1.3
10% 9.35 2.6

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 BIDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 100.00 0.86 8 10.8 6.51 (7.0%)
Mar 7 100.00 3.50 36 9.7 6.51 (7.0%)
5% Yield On BIDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 100.00 0.86 8 10.8 6.51 (7.0%)
Mar 7 100.00 3.50 36 9.7 6.51 (7.0%)
10% Yield On BIDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Feb 7 100.00 0.86 8 10.8 6.51 (7.0%)
Mar 7 100.00 3.50 36 9.7 6.51 (7.0%)

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Want more examples? BIBL Dividend | BIGC Dividend