LEG Dividend

Leggett & Platt, Inc dividend

Although LEG has a dividend of 0.38 with an ex-dividend date of Dec 13, you can sell covered calls on Leggett & Platt, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:20 PM ET):

Leggett & Platt, Inc (LEG)
Bid Ask Last Change Volume P/E Market Cap
37.80 37.82 37.81 +0.11 339K - 0.0B

LEG Dividend-Like Income Using Covered Calls

With LEG at 37.81, 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% 1.13 0.3
5% 1.89 0.5
10% 3.78 1.0

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 LEG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 40.00 0.40 39 1.0 2.18 (5.8%)
Mar 15 40.00 0.95 95 1.0 2.18 (5.8%)
5% Yield On LEG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 40.00 0.40 39 1.0 2.18 (5.8%)
Mar 15 40.00 0.95 95 1.0 2.18 (5.8%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
1.GWB dividend 6.QUOT dividend   1. dividend
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5.AZO dividend 10.HEAR dividend   5. dividend

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