LEN Dividend Type Payments

Lennar Corp dividend

Although LEN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Lennar Corp to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 2:25 PM ET):

Lennar Corp (LEN)
Bid Ask Last Change Volume P/E Market Cap
40.94 40.95 40.95 -0.23 3.2M - 0.0B

LEN Dividend-Like Income Using Covered Calls

With LEN at 40.95, 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% 1.23 0.3
5% 2.05 0.6
10% 4.10 1.1

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 LEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 47.50 0.04 9 0.4 6.55 (16.0%)
Jan 18 50.00 0.18 37 0.5 9.05 (22.1%)
5% Yield On LEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 45.00 0.08 9 0.9 4.05 (9.9%)
Jan 18 47.50 0.39 37 1.1 6.55 (16.0%)
10% Yield On LEN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 42.50 0.40 9 4.4 1.55 (3.8%)
Jan 18 45.00 0.81 37 2.2 4.05 (9.9%)

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Top 10 Open Interest For Dec 21 Expiration     Top 5 High Yield
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5.IWM dividend 10.BAC dividend   5. dividend

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