LBRT Dividend
Although LBRT has a dividend of 0.09 with an ex-dividend date of Mar 4, 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 Tue 1:25 PM ET):
| Liberty Energy Inc. Class A common stock (LBRT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 21.76 |
21.78 |
21.77 |
+0.67 |
1.4M |
19 |
3.4B |
LBRT Dividend-Like Income Using Covered Calls
With LBRT at 21.77, 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% |
0.65 |
0.2 |
| 5% |
1.09 |
0.3 |
| 10% |
2.18 |
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 |
| Jun 18 |
22.00 |
2.20 |
143 |
1.5 |
0.22 (1.0%) |
| Sep 18 |
22.00 |
3.50 |
235 |
1.5 |
0.22 (1.0%) |
| 5% Yield On LBRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
22.00 |
2.20 |
143 |
1.5 |
0.22 (1.0%) |
| Sep 18 |
22.00 |
3.50 |
235 |
1.5 |
0.22 (1.0%) |
| 10% Yield On LBRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jun 18 |
22.00 |
2.20 |
143 |
1.5 |
0.22 (1.0%) |
| Sep 18 |
22.00 |
3.50 |
235 |
1.5 |
0.22 (1.0%) |
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