LEG Dividend Type Payments

LEGGETT & PLATT dividend

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

LEGGETT & PLATT (LEG)
Bid Ask Last Change Volume P/E Market Cap
42.50 44.33 44.15 +0.71 614K 21 5.7B

LEG Dividend-Like Income Using Covered Calls

With LEG at 44.15, 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% 1.32 0.4
5% 2.21 0.6
10% 4.42 1.2

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
Sep 21 45.00 0.40 37 1.1 0.67 (1.5%)
Dec 21 45.00 1.30 128 1.0 0.67 (1.5%)
5% Yield On LEG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 45.00 0.40 37 1.1 0.67 (1.5%)
Dec 21 45.00 1.30 128 1.0 0.67 (1.5%)

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