LLY Dividend Type Payments

Eli Lilly and Company dividend

Although LLY has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Eli Lilly and Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 9:35 AM ET):

Eli Lilly and Company (LLY)
Bid Ask Last Change Volume P/E Market Cap
830.00 833.66 831.60 +6.84 120K 70 782B

LLY Dividend-Like Income Using Covered Calls

With LLY at 831.60, 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% 24.95 6.8
5% 41.58 11.4
10% 83.16 22.8

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 LLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 4 830.00 22.15 18 102.7 0.00 (0.0%)
Apr 11 830.00 26.10 25 89.8 0.00 (0.0%)
5% Yield On LLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 4 830.00 22.15 18 102.7 0.00 (0.0%)
Apr 11 830.00 26.10 25 89.8 0.00 (0.0%)
10% Yield On LLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 4 830.00 22.15 18 102.7 0.00 (0.0%)
Apr 11 830.00 26.10 25 89.8 0.00 (0.0%)

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