LLY Dividend

Eli Lilly & Co dividend

Although LLY has a dividend of 0.65 with an ex-dividend date of Aug 14, you can sell covered calls on Eli Lilly & Co to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 3:55 PM ET):

Eli Lilly & Co (LLY)
Bid Ask Last Change Volume P/E Market Cap
108.32 108.35 108.33 +0.04 3.1M 17 105B

LLY Dividend-Like Income Using Covered Calls

With LLY at 108.33, 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% 3.25 0.9
5% 5.42 1.5
10% 10.83 3.0

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 LLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 114.00 0.05 5 1.0 5.65 (5.2%)
Jul 26 116.00 0.11 12 0.9 7.65 (7.1%)
5% Yield On LLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 113.00 0.08 5 1.6 4.65 (4.3%)
Jul 26 114.00 0.21 12 1.8 5.65 (5.2%)
10% Yield On LLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 112.00 0.16 5 3.2 3.65 (3.4%)
Jul 26 112.00 0.49 12 4.1 3.65 (3.4%)

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