LB Dividend Type Payments

L Brands, Inc dividend

Although LB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on L Brands, 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):

L Brands, Inc (LB)
Bid Ask Last Change Volume P/E Market Cap
22.11 22.69 22.53 +0.02 4.3M 10 6.2B

LB Dividend-Like Income Using Covered Calls

With LB at 22.53, 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% 0.68 0.2
5% 1.13 0.3
10% 2.25 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:

3% Yield On LB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 23.50 0.05 5 1.0 0.81 (3.6%)
Jun 28 24.50 0.05 12 0.4 1.81 (8.0%)
5% Yield On LB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 23.50 0.05 5 1.0 0.81 (3.6%)
Jun 28 24.50 0.05 12 0.4 1.81 (8.0%)
10% Yield On LB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 23.50 0.05 5 1.0 0.81 (3.6%)
Jun 28 24.00 0.10 12 0.8 1.31 (5.8%)

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Want more examples? LAZ Dividend | LBAI Dividend