LZB Dividend Type Payments
Although LZB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on La-Z-Boy Incorporated to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
La-Z-Boy Incorporated (LZB) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
37.80 | 45.90 | 43.45 | -0.47 | 2.7M | 16 | 1.8B |
LZB Dividend-Like Income Using Covered Calls
With LZB at 43.45, 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% | 1.30 | 0.4 |
5% | 2.17 | 0.6 |
10% | 4.35 | 1.2 |
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 LZB Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jan 17 | 50.00 | 0.95 | 120 | 0.8 | 4.10 (9.4%) | |
Apr 17 | 50.00 | 2.10 | 210 | 1.0 | 4.10 (9.4%) |
5% Yield On LZB Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Jan 17 | 50.00 | 0.95 | 120 | 0.8 | 4.10 (9.4%) | |
Apr 17 | 50.00 | 2.10 | 210 | 1.0 | 4.10 (9.4%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | SLV dividend | 1. | RLAY dividend | |
2. | IWM dividend | 7. | GLD dividend | 2. | LUNR dividend | |
3. | SPY dividend | 8. | TLT dividend | 3. | MARA dividend | |
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Want more examples? LZ Dividend | M Dividend