LGIH Dividend Type Payments

LGI Homes, Inc. dividend

Although LGIH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on LGI Homes, Inc. 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):

LGI Homes, Inc. (LGIH)
Bid Ask Last Change Volume P/E Market Cap
66.66 90.00 72.62 +1.74 179K 8.5 1.7B

LGIH Dividend-Like Income Using Covered Calls

With LGIH at 72.62, 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% 2.18 0.6
5% 3.63 1.0
10% 7.26 2.0

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 LGIH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 100.00 1.05 145 0.7 10.00 (13.8%)
Dec 19 100.00 3.20 271 1.2 10.00 (13.8%)
5% Yield On LGIH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 90.00 1.85 145 1.3 0.00 (0.0%)
Dec 19 100.00 3.20 271 1.2 10.00 (13.8%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
 
Top 10 Open Interest For Apr 17 Expiration     Top 5 High Yield
1.NVDA dividend 6.EEM dividend   1.SLNO dividend
2.SPY dividend 7.QQQ dividend   2.WOLF dividend
3.SLV dividend 8.TLT dividend   3.EWTX dividend
4.ASHR dividend 9.TSLA dividend   4.RGTI dividend
5.NIO dividend 10.IWM dividend   5.SOUN dividend

Want more examples? LGH Dividend | LGLV Dividend