LQDT Dividend Type Payments

Liquidity Services, Inc. dividend

Although LQDT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Liquidity Services, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Liquidity Services, Inc. (LQDT)
Bid Ask Last Change Volume P/E Market Cap
23.97 24.90 24.59 +0.03 195K 31 0.8B

LQDT Dividend-Like Income Using Covered Calls

With LQDT at 24.59, 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% 0.74 0.2
5% 1.23 0.3
10% 2.46 0.7

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 LQDT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 25.00 1.10 38 2.9 0.10 (0.4%)
Jul 18 25.00 0.15 10 1.5 0.10 (0.4%)
5% Yield On LQDT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 25.00 1.10 38 2.9 0.10 (0.4%)
Jul 18 25.00 0.15 10 1.5 0.10 (0.4%)
10% Yield On LQDT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 25.00 1.10 38 2.9 0.10 (0.4%)
Jul 18 25.00 0.15 10 1.5 0.10 (0.4%)

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