DLB Dividend Type Payments

Dolby Laboratories dividend

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

Dolby Laboratories (DLB)
Bid Ask Last Change Volume P/E Market Cap
75.34 77.76 75.86 +0.39 219K 35 7.2B

DLB Dividend-Like Income Using Covered Calls

With DLB at 75.86, 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% 2.28 0.6
5% 3.79 1.0
10% 7.59 2.1

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 DLB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 80.00 1.20 44 2.7 2.24 (3.0%)
Jun 20 80.00 4.30 226 1.9 2.24 (3.0%)
5% Yield On DLB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 80.00 1.20 44 2.7 2.24 (3.0%)
Jun 20 80.00 4.30 226 1.9 2.24 (3.0%)
10% Yield On DLB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 20 80.00 1.20 44 2.7 2.24 (3.0%)
Mar 21 80.00 2.90 135 2.1 2.24 (3.0%)

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Want more examples? DKS Dividend | DLN Dividend