LH Dividend

Laboratory Corporation of America Holdings dividend

Although LH has a dividend of 0.72 with an ex-dividend date of May 28, you can sell covered calls on Laboratory Corporation of America Holdings to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 4:16 PM ET):

Laboratory Corporation of America Holdings (LH)
Bid Ask Last Change Volume P/E Market Cap
197.90 207.00 198.35 -9.59 2.1M 44 18B

LH Dividend-Like Income Using Covered Calls

With LH at 198.35, 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% 5.95 1.6
5% 9.92 2.7
10% 19.84 5.4

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
May 17 210.00 0.80 23 3.5 3.00 (1.5%)
Jun 21 210.00 2.10 58 3.6 3.00 (1.5%)
5% Yield On LH Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 210.00 0.80 23 3.5 3.00 (1.5%)
Jun 21 210.00 2.10 58 3.6 3.00 (1.5%)

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Want more examples? LGOV Dividend | LHX Dividend