LGND Dividend Type Payments
Although LGND has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ligand Pharmaceuticals Incorporated to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 9:55 AM ET):
| Ligand Pharmaceuticals Incorporated (LGND) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 193.37 | 196.69 | 194.59 | -1.49 | 18K | - | 7.3B |
LGND Dividend-Like Income Using Covered Calls
With LGND at 194.59, 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% | 5.84 | 1.6 |
| 5% | 9.73 | 2.7 |
| 10% | 19.46 | 5.3 |
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 LGND Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 200.00 | 14.00 | 120 | 11.7 | 3.31 (1.7%) | |
| Feb 20 | 200.00 | 4.00 | 36 | 11.1 | 3.31 (1.7%) | |
| 5% Yield On LGND Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 200.00 | 14.00 | 120 | 11.7 | 3.31 (1.7%) | |
| Feb 20 | 200.00 | 4.00 | 36 | 11.1 | 3.31 (1.7%) | |
| 10% Yield On LGND Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 15 | 200.00 | 14.00 | 120 | 11.7 | 3.31 (1.7%) | |
| Feb 20 | 200.00 | 4.00 | 36 | 11.1 | 3.31 (1.7%) | |
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | KWEB dividend | 6. | HYG dividend | 1. | IBRX dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | SERV dividend | |
| 3. | NVDA dividend | 8. | INTC dividend | 3. | VST dividend | |
| 4. | IBIT dividend | 9. | TLT dividend | 4. | RCAT dividend | |
| 5. | CORZ dividend | 10. | QQQ dividend | 5. | DSGN dividend | |
Want more examples? LGLV Dividend | LGOV Dividend
