LBRT Dividend
Although LBRT has a dividend of 0.07 with an ex-dividend date of Jun 6, you can sell covered calls on Liberty Energy Inc. Class A common stock to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):
| Liberty Energy Inc. Class A common stock (LBRT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 20.90 |
23.25 |
21.33 |
+0.30 |
2.8M |
7.7 |
3.5B |
LBRT Dividend-Like Income Using Covered Calls
With LBRT at 21.33, 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% |
0.64 |
0.2 |
| 5% |
1.07 |
0.3 |
| 10% |
2.13 |
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 LBRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 20 |
24.00 |
1.10 |
142 |
0.8 |
0.75 (3.5%) |
| Dec 20 |
24.00 |
1.75 |
233 |
0.8 |
0.75 (3.5%) |
| 5% Yield On LBRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 20 |
24.00 |
1.10 |
142 |
0.8 |
0.75 (3.5%) |
| Dec 20 |
24.00 |
1.75 |
233 |
0.8 |
0.75 (3.5%) |
| 10% Yield On LBRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Sep 20 |
24.00 |
1.10 |
142 |
0.8 |
0.75 (3.5%) |
| Dec 20 |
24.00 |
1.75 |
233 |
0.8 |
0.75 (3.5%) |
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