CAAS Dividend Type Payments
Although CAAS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on China Automotive Systems, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 3:55 PM ET):
| China Automotive Systems, Inc. (CAAS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 3.86 | 3.92 | 3.85 | -0.05 | 92K | 3.7 | 0.1B |
CAAS Dividend-Like Income Using Covered Calls
With CAAS at 3.85, 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% | 0.12 | 0.0 |
| 5% | 0.19 | 0.1 |
| 10% | 0.39 | 0.1 |
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 CAAS Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 5.00 | 0.05 | 150 | 0.0 | 1.08 (28.1%) | |
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| Top 10 Open Interest For Dec 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | QBTS dividend | |
| 2. | SPY dividend | 7. | IWM dividend | 2. | RGTI dividend | |
| 3. | XLF dividend | 8. | KWEB dividend | 3. | WULF dividend | |
| 4. | QQQ dividend | 9. | TLT dividend | 4. | FDX dividend | |
| 5. | FXI dividend | 10. | TSLA dividend | 5. | MU dividend | |
Want more examples? CAAP Dividend | CAC Dividend
