LEVI Dividend Type Payments
Although LEVI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Levi Strauss & Co 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):
| Levi Strauss & Co Class A (LEVI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 21.00 |
21.30 |
21.18 |
+0.21 |
793K |
14 |
8.2B |
LEVI Dividend-Like Income Using Covered Calls
With LEVI at 21.18, 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% |
0.64 |
0.2 |
| 5% |
1.06 |
0.3 |
| 10% |
2.12 |
0.6 |
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 LEVI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 2 |
21.50 |
0.10 |
10 |
1.0 |
0.20 (0.9%) |
| Jan 9 |
21.50 |
0.30 |
17 |
1.8 |
0.20 (0.9%) |
| 5% Yield On LEVI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 2 |
21.50 |
0.10 |
10 |
1.0 |
0.20 (0.9%) |
| Jan 9 |
21.50 |
0.30 |
17 |
1.8 |
0.20 (0.9%) |
| 10% Yield On LEVI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 2 |
21.50 |
0.10 |
10 |
1.0 |
0.20 (0.9%) |
| Jan 9 |
21.50 |
0.30 |
17 |
1.8 |
0.20 (0.9%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
