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 Mon 4:16 PM ET):
| Centrus Energy Corp. Class A (LEU) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 216.00 |
220.20 |
219.10 |
-4.05 |
772K |
36 |
4.1B |
LEU Dividend-Like Income Using Covered Calls
With LEU at 219.10, 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% |
6.57 |
1.8 |
| 5% |
10.96 |
3.0 |
| 10% |
21.91 |
6.0 |
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 |
220.00 |
7.60 |
5 |
148.0 |
0.00 (0.0%) |
| Oct 17 |
220.00 |
30.40 |
68 |
44.4 |
0.00 (0.0%) |
| 5% Yield On LEU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
220.00 |
7.60 |
5 |
148.0 |
0.00 (0.0%) |
| Oct 17 |
220.00 |
30.40 |
68 |
44.4 |
0.00 (0.0%) |
| 10% Yield On LEU Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
220.00 |
7.60 |
5 |
148.0 |
0.00 (0.0%) |
| Oct 17 |
220.00 |
30.40 |
68 |
44.4 |
0.00 (0.0%) |
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