NTES Dividend Type Payments
Although NTES has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on NetEase, Inc. - American Depositary Shares, each representing 5 ordinary to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| NetEase, Inc. - American Depositary Shares, each representing 5 ordinary (NTES) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 94.00 | 96.20 | 96.03 | +1.78 | 1.4M | 78 | 57B |
NTES Dividend-Like Income Using Covered Calls
With NTES at 96.03, 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% | 2.88 | 0.8 |
| 5% | 4.80 | 1.3 |
| 10% | 9.60 | 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 NTES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 100.00 | 2.15 | 25 | 8.6 | 3.80 (4.0%) | |
| Feb 14 | 100.00 | 0.65 | 32 | 2.0 | 3.80 (4.0%) | |
| 5% Yield On NTES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 100.00 | 2.15 | 25 | 8.6 | 3.80 (4.0%) | |
| Feb 14 | 100.00 | 0.65 | 32 | 2.0 | 3.80 (4.0%) | |
| 10% Yield On NTES Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Feb 7 | 100.00 | 2.15 | 25 | 8.6 | 3.80 (4.0%) | |
| Feb 14 | 103.00 | 1.15 | 32 | 3.6 | 6.80 (7.1%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | IONQ dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | APLD dividend | |
| 3. | AAPL dividend | 8. | XLF dividend | 3. | NTLA dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | SERV dividend | |
| 5. | EEM dividend | 10. | IWM dividend | 5. | JOBY dividend | |
Want more examples? NTCT Dividend | NTGR Dividend
