LI Dividend Type Payments
Although LI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Li Auto Inc. - 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 Wed 12:30 PM ET):
| Li Auto Inc. - American Depositary Shares (LI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 27.49 |
27.50 |
27.49 |
-0.13 |
2.4M |
40 |
0.0B |
LI Dividend-Like Income Using Covered Calls
With LI at 27.49, 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% |
0.82 |
0.2 |
| 5% |
1.37 |
0.4 |
| 10% |
2.75 |
0.8 |
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 LI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
27.50 |
1.28 |
17 |
7.5 |
0.00 (0.0%) |
| Apr 11 |
27.50 |
1.57 |
24 |
6.5 |
0.00 (0.0%) |
| 5% Yield On LI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
27.50 |
1.28 |
17 |
7.5 |
0.00 (0.0%) |
| Apr 11 |
27.50 |
1.57 |
24 |
6.5 |
0.00 (0.0%) |
| 10% Yield On LI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Apr 4 |
27.50 |
1.28 |
17 |
7.5 |
0.00 (0.0%) |
| Apr 11 |
27.50 |
1.57 |
24 |
6.5 |
0.00 (0.0%) |
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