LEU Dividend Type Payments
Although LEU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Centrus Energy Corp. Class A 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):
| Centrus Energy Corp. Class A (LEU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 259.66 |
261.20 |
260.18 |
+2.13 |
341K |
39 |
4.7B |
LEU Dividend-Like Income Using Covered Calls
With LEU at 260.18, 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% |
7.81 |
2.1 |
| 5% |
13.01 |
3.6 |
| 10% |
26.02 |
7.1 |
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 LEU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
260.00 |
20.50 |
24 |
80.4 |
0.00 (0.0%) |
| Apr 17 |
260.00 |
51.60 |
115 |
43.8 |
0.00 (0.0%) |
| 5% Yield On LEU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
260.00 |
20.50 |
24 |
80.4 |
0.00 (0.0%) |
| Apr 17 |
260.00 |
51.60 |
115 |
43.8 |
0.00 (0.0%) |
| 10% Yield On LEU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 16 |
260.00 |
20.50 |
24 |
80.4 |
0.00 (0.0%) |
| Apr 17 |
260.00 |
51.60 |
115 |
43.8 |
0.00 (0.0%) |
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