LEU Dividend Type Payments
Although LEU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Centrus Energy Corp. Class A 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):
| Centrus Energy Corp. Class A (LEU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 191.41 |
192.51 |
190.04 |
+9.08 |
2.9M |
28 |
3.1B |
LEU Dividend-Like Income Using Covered Calls
With LEU at 190.04, 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% |
5.70 |
1.6 |
| 5% |
9.50 |
2.6 |
| 10% |
19.00 |
5.2 |
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 LEU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
195.00 |
24.30 |
57 |
42.6 |
2.49 (1.3%) |
| Oct 17 |
195.00 |
34.60 |
120 |
28.8 |
2.49 (1.3%) |
| 5% Yield On LEU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
195.00 |
24.30 |
57 |
42.6 |
2.49 (1.3%) |
| Oct 17 |
195.00 |
34.60 |
120 |
28.8 |
2.49 (1.3%) |
| 10% Yield On LEU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
195.00 |
24.30 |
57 |
42.6 |
2.49 (1.3%) |
| Oct 17 |
195.00 |
34.60 |
120 |
28.8 |
2.49 (1.3%) |
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