LIT Dividend Type Payments
Although LIT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X Lithium & Battery Tech ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Global X Lithium & Battery Tech ETF (LIT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 62.00 | 64.00 | 63.82 | +0.20 | 206K | - | 1.6B |
LIT Dividend-Like Income Using Covered Calls
With LIT at 63.82, 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 LIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 64.00 | 1.75 | 30 | 5.8 | 0.00 (0.0%) | |
| Apr 17 | 65.00 | 3.70 | 121 | 3.1 | 1.00 (1.6%) | |
| 5% Yield On LIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 64.00 | 1.75 | 30 | 5.8 | 0.00 (0.0%) | |
| Apr 17 | 65.00 | 3.70 | 121 | 3.1 | 1.00 (1.6%) | |
| 10% Yield On LIT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jan 16 | 64.00 | 1.75 | 30 | 5.8 | 0.00 (0.0%) | |
| Apr 17 | 65.00 | 3.70 | 121 | 3.1 | 1.00 (1.6%) | |
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| Top 10 Open Interest For Jan 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | KBH dividend | |
| 2. | INTC dividend | 7. | NIO dividend | 2. | OMER dividend | |
| 3. | IBIT dividend | 8. | GLD dividend | 3. | BB dividend | |
| 4. | TLT dividend | 9. | NFLX dividend | 4. | TLRY dividend | |
| 5. | SLV dividend | 10. | ASST dividend | 5. | TE dividend | |
Want more examples? LION Dividend | LITE Dividend
