LX Dividend Type Payments
Although LX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on LexinFintech Holdings Ltd. - 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 Tue 4:16 PM ET):
| LexinFintech Holdings Ltd. - American Depositary Shares (LX) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 2.95 |
3.02 |
2.96 |
-0.09 |
1.2M |
4.2 |
0.0B |
LX Dividend-Like Income Using Covered Calls
With LX at 2.96, 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% |
0.09 |
0.0 |
| 5% |
0.15 |
0.0 |
| 10% |
0.30 |
0.1 |
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 LX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
5.00 |
0.05 |
95 |
0.1 |
1.98 (66.9%) |
| Aug 21 |
5.00 |
0.05 |
193 |
0.0 |
1.98 (66.9%) |
| 5% Yield On LX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 15 |
5.00 |
0.05 |
95 |
0.1 |
1.98 (66.9%) |
| Dec 18 |
5.00 |
0.20 |
312 |
0.1 |
1.98 (66.9%) |
| 10% Yield On LX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 15 |
5.00 |
0.35 |
340 |
0.1 |
1.98 (66.9%) |
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