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 Fri 4:16 PM ET):

Leggett & Platt, Incorporated (LEG)
Bid Ask Last Change Volume P/E Market Cap
9.40 9.55 9.53 -0.19 4.3M - 1.3B

LEG Dividend-Like Income Using Covered Calls

With LEG at 9.53, 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% 0.29 0.1
5% 0.48 0.1
10% 0.95 0.3

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 16 10.00 0.15 15 1.0 0.45 (4.7%)
Oct 17 10.00 1.15 169 0.7 0.45 (4.7%)
5% Yield On LEG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 10.00 0.15 15 1.0 0.45 (4.7%)
Oct 17 10.00 1.15 169 0.7 0.45 (4.7%)
10% Yield On LEG Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 16 10.00 0.15 15 1.0 0.45 (4.7%)
Oct 17 10.00 1.15 169 0.7 0.45 (4.7%)

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