LEVI Dividend
Although LEVI has a dividend of 0.12 with an ex-dividend date of May 8, you can sell covered calls on Levi Strauss & Co 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):
Levi Strauss & Co Class A (LEVI) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
21.65 |
22.00 |
22.00 |
+0.08 |
1.6M |
73 |
6.5B |
LEVI Dividend-Like Income Using Covered Calls
With LEVI at 22.00, 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% |
0.66 |
0.2 |
5% |
1.10 |
0.3 |
10% |
2.20 |
0.6 |
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 LEVI Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
22.00 |
0.40 |
15 |
2.7 |
0.00 (0.0%) |
Oct 18 |
22.00 |
2.20 |
169 |
1.3 |
0.00 (0.0%) |
5% Yield On LEVI Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
22.00 |
0.40 |
15 |
2.7 |
0.00 (0.0%) |
Oct 18 |
22.00 |
2.20 |
169 |
1.3 |
0.00 (0.0%) |
10% Yield On LEVI Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
22.00 |
0.40 |
15 |
2.7 |
0.00 (0.0%) |
Oct 18 |
22.00 |
2.20 |
169 |
1.3 |
0.00 (0.0%) |
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