LBRT Dividend
Although LBRT has a dividend of 0.08 with an ex-dividend date of Dec 6, you can sell covered calls on Liberty Energy Inc. Class A common stock 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 Energy Inc. Class A common stock (LBRT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 17.69 |
17.79 |
17.72 |
+0.82 |
8.7M |
8.1 |
2.8B |
LBRT Dividend-Like Income Using Covered Calls
With LBRT at 17.72, 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% |
0.53 |
0.1 |
| 5% |
0.89 |
0.2 |
| 10% |
1.77 |
0.5 |
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 LBRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
18.00 |
0.85 |
33 |
2.6 |
0.21 (1.2%) |
| Aug 15 |
18.00 |
0.60 |
271 |
0.2 |
0.21 (1.2%) |
| 5% Yield On LBRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
18.00 |
0.85 |
33 |
2.6 |
0.21 (1.2%) |
| Aug 15 |
19.00 |
2.00 |
271 |
0.7 |
1.21 (6.8%) |
| 10% Yield On LBRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 20 |
18.00 |
0.85 |
33 |
2.6 |
0.21 (1.2%) |
| Aug 15 |
19.00 |
2.00 |
271 |
0.7 |
1.21 (6.8%) |
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