FUTU Dividend Type Payments
Although FUTU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Futu Holdings Limited - American Depositary Shares 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):
| Futu Holdings Limited - American Depositary Shares (FUTU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 83.90 |
84.65 |
84.04 |
+0.40 |
877K |
164 |
0.9B |
FUTU Dividend-Like Income Using Covered Calls
With FUTU at 84.04, 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% |
2.52 |
0.7 |
| 5% |
4.20 |
1.2 |
| 10% |
8.40 |
2.3 |
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 FUTU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 27 |
85.05 |
1.47 |
8 |
18.4 |
0.40 (0.5%) |
| Jan 3 |
101.00 |
0.30 |
15 |
2.0 |
16.35 (19.5%) |
| 5% Yield On FUTU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 27 |
85.05 |
1.47 |
8 |
18.4 |
0.40 (0.5%) |
| Jan 3 |
101.00 |
0.30 |
15 |
2.0 |
16.35 (19.5%) |
| 10% Yield On FUTU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 27 |
85.05 |
1.47 |
8 |
18.4 |
0.40 (0.5%) |
| Jan 3 |
85.05 |
2.86 |
15 |
19.1 |
0.40 (0.5%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
