LBRDK Dividend Type Payments
Although LBRDK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Liberty Broadband Corporation - Class C 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):
| Liberty Broadband Corporation - Class C (LBRDK) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 60.20 |
61.72 |
61.58 |
+1.38 |
1.8M |
- |
8.6B |
LBRDK Dividend-Like Income Using Covered Calls
With LBRDK at 61.58, 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% |
1.85 |
0.5 |
| 5% |
3.08 |
0.8 |
| 10% |
6.16 |
1.7 |
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 LBRDK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
62.50 |
2.95 |
64 |
4.6 |
0.78 (1.3%) |
| Sep 19 |
65.00 |
0.95 |
36 |
2.6 |
3.28 (5.3%) |
| 5% Yield On LBRDK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
62.50 |
2.95 |
64 |
4.6 |
0.78 (1.3%) |
| Sep 19 |
65.00 |
0.95 |
36 |
2.6 |
3.28 (5.3%) |
| 10% Yield On LBRDK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Oct 17 |
62.50 |
2.95 |
64 |
4.6 |
0.78 (1.3%) |
| Sep 19 |
65.00 |
0.95 |
36 |
2.6 |
3.28 (5.3%) |
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