LYB Dividend Type Payments
Although LYB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on LyondellBasell Industries NV Ordinary Shares Class A (Netherlands) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| LyondellBasell Industries NV Ordinary Shares Class A (Netherlands) (LYB) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 64.25 | 66.50 | 65.32 | +0.48 | 2.6M | 20 | 21B |
LYB Dividend-Like Income Using Covered Calls
With LYB at 65.32, 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% | 1.96 | 0.5 |
| 5% | 3.27 | 0.9 |
| 10% | 6.53 | 1.8 |
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 LYB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 70.00 | 1.20 | 37 | 3.2 | 3.50 (5.4%) | |
| Jul 18 | 70.00 | 0.05 | 9 | 0.6 | 3.50 (5.4%) | |
| 5% Yield On LYB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 70.00 | 1.20 | 37 | 3.2 | 3.50 (5.4%) | |
| Sep 19 | 70.00 | 1.80 | 72 | 2.5 | 3.50 (5.4%) | |
| 10% Yield On LYB Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 70.00 | 1.20 | 37 | 3.2 | 3.50 (5.4%) | |
| Sep 19 | 70.00 | 1.80 | 72 | 2.5 | 3.50 (5.4%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | GLD dividend | 1. | HTZ dividend | |
| 2. | SLV dividend | 7. | AAPL dividend | 2. | AEVA dividend | |
| 3. | SPY dividend | 8. | IBIT dividend | 3. | HUT dividend | |
| 4. | TSLA dividend | 9. | TLT dividend | 4. | IREN dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | ENVX dividend | |
Want more examples? LXU Dividend | LYFT Dividend
