LBTYA Dividend Type Payments

Liberty Global Plc CL A ORD dividend

Although LBTYA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Liberty Global Plc CL A ORD to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:40 PM ET):

Liberty Global Plc CL A ORD (LBTYA)
Bid Ask Last Change Volume P/E Market Cap
25.64 25.65 25.65 -0.01 498K - 19B

LBTYA Dividend-Like Income Using Covered Calls

With LBTYA at 25.65, 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% 0.77 0.2
5% 1.28 0.4
10% 2.57 0.7

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 LBTYA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 27.50 0.30 25 1.2 1.85 (7.2%)
Apr 18 30.00 0.20 59 0.3 4.35 (17.0%)
5% Yield On LBTYA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 27.50 0.30 25 1.2 1.85 (7.2%)
Apr 18 27.50 0.65 59 1.1 1.85 (7.2%)
10% Yield On LBTYA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 27.50 0.30 25 1.2 1.85 (7.2%)
Apr 18 27.50 0.65 59 1.1 1.85 (7.2%)

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