LEA Dividend Type Payments

LEAR dividend

Although LEA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on LEAR to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 2:30 PM ET):

LEAR (LEA)
Bid Ask Last Change Volume P/E Market Cap
136.33 136.47 136.43 +2.05 768K 6.8 8.8B

LEA Dividend-Like Income Using Covered Calls

With LEA at 136.43, 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% 4.09 1.1
5% 6.82 1.9
10% 13.64 3.7

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 LEA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 160.00 0.40 29 1.4 23.53 (17.2%)
Dec 21 160.00 1.00 64 1.6 23.53 (17.2%)
5% Yield On LEA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 155.00 0.80 29 2.8 18.53 (13.6%)
Dec 21 155.00 1.70 64 2.7 18.53 (13.6%)
10% Yield On LEA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 150.00 1.50 29 5.2 13.53 (9.9%)
Dec 21 150.00 2.65 64 4.1 13.53 (9.9%)

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Want more examples? LE Dividend | LEAF Dividend