LII Dividend

Although LII has a dividend of 1.30 with an ex-dividend date of Dec 31, 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 Fri 1:15 PM ET):

Lennox International, Inc. (LII)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
493.89	495.12	494.45	+0.44	112K	21	17B

LII Dividend-Like Income Using Covered Calls

With LII at 494.45, 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%	14.83	4.1
5%	24.72	6.8
10%	49.45	13.5

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
Jan 16	500.00	11.60	29	40.0	4.88 (1.0%)
Dec 18	500.00	66.00	365	18.1	4.88 (1.0%)

5% Yield On LII Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 16	500.00	11.60	29	40.0	4.88 (1.0%)
Dec 18	500.00	66.00	365	18.1	4.88 (1.0%)

10% Yield On LII Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 16	500.00	11.60	29	40.0	4.88 (1.0%)
Dec 18	500.00	66.00	365	18.1	4.88 (1.0%)

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Want more examples? LI Dividend | LILA Dividend