LYTS Dividend
Although LYTS has a dividend of 0.05 with an ex-dividend date of Nov 18, you can sell covered calls on LSI Industries 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):
| LSI Industries Inc. (LYTS) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 20.05 | 21.06 | 20.50 | -0.24 | 118K | 25 | 0.6B |
LYTS Dividend-Like Income Using Covered Calls
With LYTS at 20.50, 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% | 0.62 | 0.2 |
| 5% | 1.03 | 0.3 |
| 10% | 2.05 | 0.6 |
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:
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| Top 10 Open Interest For Nov 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | FXI dividend | 6. | IWM dividend | 1. | AAP dividend | |
| 2. | NVDA dividend | 7. | EEM dividend | 2. | CAPR dividend | |
| 3. | TSLA dividend | 8. | TLT dividend | 3. | RKLB dividend | |
| 4. | SPY dividend | 9. | SMCI dividend | 4. | DLO dividend | |
| 5. | SLV dividend | 10. | EWZ dividend | 5. | NICE dividend | |
Want more examples? LYG Dividend | LYV Dividend
