LBRDK Dividend Type Payments
Although LBRDK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Liberty Broadband Corporation - Class C 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):
| Liberty Broadband Corporation - Class C (LBRDK) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 83.92 |
88.88 |
87.25 |
-1.07 |
1.1M |
- |
13B |
LBRDK Dividend-Like Income Using Covered Calls
With LBRDK at 87.25, 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% |
2.62 |
0.7 |
| 5% |
4.36 |
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 LBRDK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
90.00 |
1.40 |
61 |
2.3 |
1.12 (1.3%) |
| Jun 20 |
100.00 |
3.00 |
215 |
1.4 |
11.12 (12.7%) |
| 5% Yield On LBRDK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 17 |
90.00 |
1.40 |
61 |
2.3 |
1.12 (1.3%) |
| Jun 20 |
100.00 |
3.00 |
215 |
1.4 |
11.12 (12.7%) |
| 10% Yield On LBRDK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 20 |
90.00 |
7.40 |
215 |
3.4 |
1.12 (1.3%) |
| Mar 21 |
90.00 |
4.50 |
124 |
3.6 |
1.12 (1.3%) |
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