GXC Dividend Type Payments

Although GXC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on SPDR S&P CHINA to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

SPDR S&P CHINA (GXC)
Bid Ask Last Change Volume P/E Market Cap
82.62 92.69 87.31 -1.52 42K - 11B

GXC Dividend-Like Income Using Covered Calls

With GXC at 87.31, 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% 2.62 0.7
5% 4.37 1.2
10% 8.73 2.4

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 GXC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 94.00 0.25 33 0.8 1.31 (1.5%)
Dec 21 95.00 0.55 68 0.8 2.31 (2.6%)
5% Yield On GXC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 93.00 0.50 33 1.5 0.31 (0.4%)
Dec 21 93.00 1.05 68 1.5 0.31 (0.4%)

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Want more examples? GWX Dividend | GXF Dividend