LB Dividend Type Payments

LandBridge Company LLC Class A Shares Representing Limited Liability Com dividend

Although LB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on LandBridge Company LLC Class A Shares Representing Limited Liability Com to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 3:05 PM ET):

LandBridge Company LLC Class A Shares Representing Limited Liability Com (LB)
Bid Ask Last Change Volume P/E Market Cap
57.04 57.25 57.04 0.00 300K - 3.0B

LB Dividend-Like Income Using Covered Calls

With LB at 57.04, 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% 1.71 0.5
5% 2.85 0.8
10% 5.70 1.6

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
May 15 60.00 5.80 109 5.3 2.75 (4.8%)
Dec 18 60.00 10.50 326 3.2 2.75 (4.8%)
5% Yield On LB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 60.00 5.80 109 5.3 2.75 (4.8%)
Dec 18 60.00 10.50 326 3.2 2.75 (4.8%)
10% Yield On LB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 15 60.00 5.80 109 5.3 2.75 (4.8%)
Dec 18 60.00 10.50 326 3.2 2.75 (4.8%)

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