LEG Dividend Type Payments

Leggett & Platt, Incorporated dividend

Although LEG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Leggett & Platt, Incorporated 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, Incorporated (LEG)
Bid Ask Last Change Volume P/E Market Cap
17.45 17.95 17.68 +0.38 1.3M - 2.3B

LEG Dividend-Like Income Using Covered Calls

With LEG at 17.68, 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% 0.53 0.1
5% 0.88 0.2
10% 1.77 0.5

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
May 17 20.00 0.10 30 0.3 2.05 (11.6%)
Jun 21 20.00 0.25 65 0.4 2.05 (11.6%)
5% Yield On LEG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 20.00 0.10 30 0.3 2.05 (11.6%)
Jun 21 20.00 0.25 65 0.4 2.05 (11.6%)

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