LIT Dividend Type Payments

Global X Lithium & Battery Tech ETF dividend

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 Fri 4:16 PM ET):

Global X Lithium & Battery Tech ETF (LIT)
Bid Ask Last Change Volume P/E Market Cap
40.17 43.46 40.80 -0.18 195K - 1.0B

LIT Dividend-Like Income Using Covered Calls

With LIT at 40.80, 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% 1.22 0.3
5% 2.04 0.6
10% 4.08 1.1

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 LIT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 44.00 0.10 15 0.7 0.54 (1.3%)
Oct 17 45.00 0.50 78 0.6 1.54 (3.8%)
5% Yield On LIT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 44.00 0.10 15 0.7 0.54 (1.3%)
Oct 17 45.00 0.50 78 0.6 1.54 (3.8%)

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Want more examples? LION Dividend | LITE Dividend