LKQ Dividend

Although LKQ has a dividend of 0.30 with an ex-dividend date of Nov 20, you can sell covered calls on LKQ Corporation 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):

LKQ Corporation (LKQ)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
29.80	30.20	29.89	-0.66	2.0M	11	7.8B

LKQ Dividend-Like Income Using Covered Calls

With LKQ at 29.89, 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%	0.90	0.2
5%	1.49	0.4
10%	2.99	0.8

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 LKQ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	32.50	0.15	33	0.5	2.30 (7.7%)
May 15	32.50	0.85	180	0.5	2.30 (7.7%)

5% Yield On LKQ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	32.50	0.15	33	0.5	2.30 (7.7%)
May 15	32.50	0.85	180	0.5	2.30 (7.7%)

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

Top 10 Open Interest For Nov 21 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	TLT dividend	1.	IMNM dividend
2.	IBIT dividend	7.	SPY dividend	2.	RZLT dividend
3.	KVUE dividend	8.	QQQ dividend	3.	TMC dividend
4.	TSLA dividend	9.	GLD dividend	4.	JANX dividend
5.	SLV dividend	10.	ASST dividend	5.	HYMC dividend

Want more examples? LKFN Dividend | LLY Dividend