LEVI Dividend Type Payments
Although LEVI has no upcoming (meaning, Board-approved and announced) dividends, 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 Mon 12:15 PM ET):
| Levi Strauss & Co Class A (LEVI) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 16.44 |
16.46 |
16.45 |
+0.24 |
469K |
18 |
6.4B |
LEVI Dividend-Like Income Using Covered Calls
With LEVI at 16.45, 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% |
0.49 |
0.1 |
| 5% |
0.82 |
0.2 |
| 10% |
1.65 |
0.5 |
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 16 |
17.00 |
0.20 |
12 |
1.7 |
0.54 (3.3%) |
| Oct 17 |
17.00 |
1.60 |
166 |
1.0 |
0.54 (3.3%) |
| 5% Yield On LEVI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
17.00 |
0.20 |
12 |
1.7 |
0.54 (3.3%) |
| Oct 17 |
17.00 |
1.60 |
166 |
1.0 |
0.54 (3.3%) |
| 10% Yield On LEVI Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
17.00 |
0.20 |
12 |
1.7 |
0.54 (3.3%) |
| Oct 17 |
17.00 |
1.60 |
166 |
1.0 |
0.54 (3.3%) |
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