LII Dividend Type Payments

Although LII has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Lennox International, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 12:15 PM ET):

Lennox International, Inc. (LII)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
530.13	531.94	530.95	+8.00	171K	22	18B

LII Dividend-Like Income Using Covered Calls

With LII at 530.95, 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%	15.93	4.4
5%	26.55	7.3
10%	53.10	14.5

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 LII Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	530.00	32.40	61	49.9	0.00 (0.0%)
Nov 21	530.00	27.30	33	76.8	0.00 (0.0%)

5% Yield On LII Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	530.00	32.40	61	49.9	0.00 (0.0%)
Nov 21	530.00	27.30	33	76.8	0.00 (0.0%)

10% Yield On LII Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	530.00	32.40	61	49.9	0.00 (0.0%)
Nov 21	530.00	27.30	33	76.8	0.00 (0.0%)

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Want more examples? LI Dividend | LILA Dividend