LEA Dividend

Although LEA has a dividend of 0.77 with an ex-dividend date of Jun 5, you can sell covered calls on Lear Corporation 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):

Lear Corporation (LEA)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
78.00	93.06	89.96	-2.14	691K	11	4.9B

LEA Dividend-Like Income Using Covered Calls

With LEA at 89.96, 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%	2.70	0.7
5%	4.50	1.2
10%	9.00	2.5

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 LEA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 18	100.00	0.90	52	1.7	6.94 (7.7%)
Sep 19	100.00	2.70	115	2.3	6.94 (7.7%)

5% Yield On LEA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 18	100.00	0.90	52	1.7	6.94 (7.7%)
Sep 19	100.00	2.70	115	2.3	6.94 (7.7%)

10% Yield On LEA Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jul 18	95.00	2.10	52	4.0	1.94 (2.2%)
Sep 19	95.00	4.10	115	3.6	1.94 (2.2%)

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Want more examples? LE Dividend | LECO Dividend