LANC Dividend Type Payments

LANCASTER COLONY dividend

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

LANCASTER COLONY (LANC)
Bid Ask Last Change Volume P/E Market Cap
146.86 146.86 146.86 -2.06 131K 31 4.1B

LANC Dividend-Like Income Using Covered Calls

With LANC at 146.86, here's a table showing how big the annual "dividend" (ie. 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% 4.41 1.2
5% 7.34 2.0
10% 14.69 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 LANC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 150.00 0.70 32 2.2 3.14 (2.1%)
Oct 19 155.00 0.95 60 1.6 8.14 (5.5%)
5% Yield On LANC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 150.00 0.70 32 2.2 3.14 (2.1%)
Oct 19 150.00 2.65 60 4.4 3.14 (2.1%)
10% Yield On LANC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 150.00 2.65 60 4.4 3.14 (2.1%)
Dec 21 150.00 5.20 123 4.2 3.14 (2.1%)

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