LGND Dividend Type Payments

Ligand Pharmaceuticals, Inc dividend

Although LGND has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Ligand Pharmaceuticals, Inc 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):

Ligand Pharmaceuticals, Inc (LGND)
Bid Ask Last Change Volume P/E Market Cap
113.00 122.75 120.86 -0.02 446K - 2.6B

LGND Dividend-Like Income Using Covered Calls

With LGND at 120.86, 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% 3.63 1.0
5% 6.04 1.7
10% 12.09 3.3

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 LGND Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 145.00 0.50 29 1.7 22.25 (18.4%)
May 17 175.00 1.00 92 1.1 52.25 (43.2%)
5% Yield On LGND Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 145.00 0.50 29 1.7 22.25 (18.4%)
May 17 165.00 1.75 92 1.9 42.25 (35.0%)
10% Yield On LGND Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Mar 15 140.00 1.05 29 3.6 17.25 (14.3%)
May 17 150.00 3.90 92 4.2 27.25 (22.5%)

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.ICPT dividend
2.EEM dividend 7.GE dividend   2.ROKU dividend
3.SPY dividend 8.XOP dividend   3.KPTI dividend
4.FXI dividend 9.BAC dividend   4.BHC dividend
5.QQQ dividend 10.JD dividend   5.VKTX dividend

Want more examples? LGLV Dividend | LH Dividend