CHIX Dividend Type Payments

Although CHIX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Global X China Financials ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:35 PM ET):

Global X China Financials ETF (CHIX)
Bid Ask Last Change Volume P/E Market Cap
16.98 17.00 17.02 +0.04 62K - 0.0B

CHIX Dividend-Like Income Using Covered Calls

With CHIX at 17.02, here's a table showing how big the annual "dividend" (ie. 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% 0.51 0.1
5% 0.85 0.2
10% 1.70 0.5

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 CHIX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 17.00 0.30 24 1.3 0.00 (0.0%)
May 17 18.00 0.10 53 0.2 1.00 (5.9%)
5% Yield On CHIX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 17.00 0.30 24 1.3 0.00 (0.0%)
May 17 17.00 0.45 53 0.8 0.00 (0.0%)
10% Yield On CHIX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 18 17.00 0.30 24 1.3 0.00 (0.0%)
May 17 17.00 0.45 53 0.8 0.00 (0.0%)

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Want more examples? CHIQ Dividend | CHK Dividend