LE Dividend Type Payments

LANDS END dividend

Although LE has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on LANDS END to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:00 PM ET):

LANDS END (LE)
Bid Ask Last Change Volume P/E Market Cap
24.15 24.20 24.15 -1.75 313K 25 0.8B

LE Dividend-Like Income Using Covered Calls

With LE at 24.15, 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% 0.72 0.2
5% 1.21 0.3
10% 2.42 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 LE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 30.00 0.20 38 0.5 5.80 (24.0%)
Dec 21 30.00 0.80 129 0.6 5.80 (24.0%)
5% Yield On LE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 30.00 0.20 38 0.5 5.80 (24.0%)
Dec 21 30.00 0.80 129 0.6 5.80 (24.0%)
10% Yield On LE Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 25.00 1.35 38 3.6 0.80 (3.3%)
Dec 21 25.00 2.25 129 1.7 0.80 (3.3%)

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