EDU Dividend Type Payments

New Oriental Education & Technology Group, Inc. Sponsored ADR representi dividend

Although EDU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on New Oriental Education & Technology Group, Inc. Sponsored ADR representi to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

New Oriental Education & Technology Group, Inc. Sponsored ADR representi (EDU)
Bid Ask Last Change Volume P/E Market Cap
62.90 64.30 63.77 +0.30 675K 276 10B

EDU Dividend-Like Income Using Covered Calls

With EDU at 63.77, 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% 1.91 0.5
5% 3.19 0.9
10% 6.38 1.7

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 EDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 64.42 1.60 10 16.0 0.12 (0.2%)
Apr 17 64.42 6.60 100 6.6 0.12 (0.2%)
5% Yield On EDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 64.42 1.60 10 16.0 0.12 (0.2%)
Apr 17 64.42 6.60 100 6.6 0.12 (0.2%)
10% Yield On EDU Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 17 64.42 1.60 10 16.0 0.12 (0.2%)
Apr 17 64.42 6.60 100 6.6 0.12 (0.2%)

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

 
 
Top 10 Open Interest For Jan 17 Expiration     Top 5 High Yield
1.NVDA dividend 6.SPY dividend   1.RGTI dividend
2.SLV dividend 7.XLF dividend   2.IONQ dividend
3.AAPL dividend 8.IWM dividend   3.U dividend
4.EEM dividend 9.TSLA dividend   4.VIR dividend
5.INTC dividend 10.TLT dividend   5.HCAT dividend

Want more examples? EDR Dividend | EDV Dividend