LECO Dividend
Although LECO has a dividend of 0.71 with an ex-dividend date of Jun 28, you can sell covered calls on Lincoln Electric Holdings, Inc. - Common Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Lincoln Electric Holdings, Inc. - Common Shares (LECO) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 238.92 | 383.96 | 239.77 | +4.61 | 168K | 25 | 13B |
LECO Dividend-Like Income Using Covered Calls
With LECO at 239.77, 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% | 7.19 | 2.0 |
| 5% | 11.99 | 3.3 |
| 10% | 23.98 | 6.6 |
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:
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| Top 10 Open Interest For May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | KWEB dividend | 1. | CIFR dividend | |
| 2. | HYG dividend | 7. | EEM dividend | 2. | FSLY dividend | |
| 3. | SPY dividend | 8. | TSLA dividend | 3. | ENPH dividend | |
| 4. | QQQ dividend | 9. | SLV dividend | 4. | CGC dividend | |
| 5. | FXI dividend | 10. | EWZ dividend | 5. | SNAP dividend | |
Want more examples? LEA Dividend | LEG Dividend
