LEN Dividend Type Payments

Lennar Corporation Class A dividend

Although LEN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Lennar Corporation Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 10:45 AM ET):

Lennar Corporation Class A (LEN)
Bid Ask Last Change Volume P/E Market Cap
104.81 104.88 104.84 -0.24 400K 10 27B

LEN Dividend-Like Income Using Covered Calls

With LEN at 104.84, 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% 3.15 0.9
5% 5.24 1.4
10% 10.48 2.9

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 LEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 2 105.00 1.55 8 19.4 0.12 (0.1%)
Jan 9 105.00 2.45 15 16.3 0.12 (0.1%)
5% Yield On LEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 2 105.00 1.55 8 19.4 0.12 (0.1%)
Jan 9 105.00 2.45 15 16.3 0.12 (0.1%)
10% Yield On LEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 2 105.00 1.55 8 19.4 0.12 (0.1%)
Jan 9 105.00 2.45 15 16.3 0.12 (0.1%)

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