LPX Dividend Type Payments

Louisiana-Pacific Corporation dividend

Although LPX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Louisiana-Pacific 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):

Louisiana-Pacific Corporation (LPX)
Bid Ask Last Change Volume P/E Market Cap
89.00 95.92 91.38 -0.67 1.7M 30 6.4B

LPX Dividend-Like Income Using Covered Calls

With LPX at 91.38, 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% 2.74 0.8
5% 4.57 1.3
10% 9.14 2.5

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 LPX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 100.00 3.10 124 2.5 4.08 (4.5%)
Feb 20 100.00 0.85 40 2.1 4.08 (4.5%)
5% Yield On LPX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 100.00 3.10 124 2.5 4.08 (4.5%)
Feb 20 100.00 0.85 40 2.1 4.08 (4.5%)
10% Yield On LPX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 21 100.00 6.50 222 2.9 4.08 (4.5%)

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