LH Dividend Type Payments

LABORATORY CORP dividend

Although LH has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on LABORATORY CORP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:00 PM ET):

LABORATORY CORP (LH)
Bid Ask Last Change Volume P/E Market Cap
172.42 172.43 172.41 -1.68 570K 14 18B

LH Dividend-Like Income Using Covered Calls

With LH at 172.41, 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% 5.17 1.4
5% 8.62 2.4
10% 17.24 4.7

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 LH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 185.00 0.70 30 2.3 12.57 (7.3%)
Dec 21 185.00 1.60 65 2.5 12.57 (7.3%)
5% Yield On LH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 180.00 1.70 30 5.7 7.57 (4.4%)
Dec 21 185.00 1.60 65 2.5 12.57 (7.3%)
10% Yield On LH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 180.00 1.70 30 5.7 7.57 (4.4%)
Dec 21 175.00 5.00 65 7.7 2.57 (1.5%)

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Want more examples? LGND Dividend | LHCG Dividend