LSTR Dividend

Although LSTR has a dividend of 2.00 with an ex-dividend date of Jan 6, you can sell covered calls on Landstar System, Inc. 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):

Landstar System, Inc. (LSTR)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
145.63	146.50	145.81	+3.77	682K	36	4.9B

LSTR Dividend-Like Income Using Covered Calls

With LSTR at 145.81, 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%	4.37	1.2
5%	7.29	2.0
10%	14.58	4.0

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 LSTR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	150.00	0.25	12	2.1	3.50 (2.4%)
Jan 16	150.00	2.05	40	5.1	3.50 (2.4%)

5% Yield On LSTR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 19	150.00	0.25	12	2.1	3.50 (2.4%)
Jan 16	150.00	2.05	40	5.1	3.50 (2.4%)

10% Yield On LSTR Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 16	150.00	2.05	40	5.1	3.50 (2.4%)
Apr 17	150.00	7.50	131	5.7	3.50 (2.4%)

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

Top 10 Open Interest For Dec 19 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	EEM dividend	1.	RZLT dividend
2.	SPY dividend	7.	TLT dividend	2.	LULU dividend
3.	QQQ dividend	8.	SLV dividend	3.	NKTR dividend
4.	IWM dividend	9.	GLD dividend	4.	UAMY dividend
5.	IBIT dividend	10.	FXI dividend	5.	BE dividend

Want more examples? LSPD Dividend | LTBR Dividend