LEA Dividend Type Payments

Lear Corp dividend

Although LEA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Lear Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

Lear Corp (LEA)
Bid Ask Last Change Volume P/E Market Cap
101.30 130.00 122.47 -1.59 647K - 0.0B

LEA Dividend-Like Income Using Covered Calls

With LEA at 122.47, 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% 3.67 1.0
5% 6.12 1.7
10% 12.25 3.4

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
Dec 21 135.00 0.10 8 1.3 5.00 (4.1%)
Jan 18 145.00 0.45 36 1.3 15.00 (12.2%)
5% Yield On LEA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 130.00 0.50 8 6.3 0.00 (0.0%)
Jan 18 140.00 0.85 36 2.4 10.00 (8.2%)
10% Yield On LEA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 130.00 0.50 8 6.3 0.00 (0.0%)
Jan 18 135.00 1.65 36 4.6 5.00 (4.1%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.SPY dividend 6.EWZ dividend   1. dividend
2.EEM dividend 7.FXI dividend   2. dividend
3.SPX dividend 8.GE dividend   3. dividend
4.QQQ dividend 9.BAC dividend   4. dividend
5.IWM dividend 10.VXX dividend   5. dividend

Want more examples? LE Dividend | LEAF Dividend