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 Wed 4:16 PM ET):
| LexinFintech Holdings Ltd. - American Depositary Shares (LX) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 7.50 |
7.69 |
7.67 |
+0.18 |
2.3M |
14 |
0.0B |
LX Dividend-Like Income Using Covered Calls
With LX at 7.67, 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% |
0.23 |
0.1 |
| 5% |
0.38 |
0.1 |
| 10% |
0.77 |
0.2 |
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 |
| Aug 15 |
10.00 |
0.10 |
52 |
0.2 |
2.31 (30.1%) |
| Jul 18 |
10.00 |
0.05 |
24 |
0.2 |
2.31 (30.1%) |
| 5% Yield On LX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
10.00 |
0.10 |
52 |
0.2 |
2.31 (30.1%) |
| Jul 18 |
10.00 |
0.05 |
24 |
0.2 |
2.31 (30.1%) |
| 10% Yield On LX Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Nov 21 |
10.00 |
0.45 |
150 |
0.3 |
2.31 (30.1%) |
| Feb 20 |
10.00 |
0.75 |
241 |
0.3 |
2.31 (30.1%) |
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