LLY Dividend

ELI LILLY dividend

Although LLY has a dividend of 0.56 with an ex-dividend date of Aug 14, you can sell covered calls on ELI LILLY to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

ELI LILLY (LLY)
Bid Ask Last Change Volume P/E Market Cap
87.18 90.20 89.07 -0.64 3.2M 84 97B

LLY Dividend-Like Income Using Covered Calls

With LLY at 89.07, 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% 2.67 0.7
5% 4.45 1.2
10% 8.91 2.4

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 LLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 91.00 0.07 5 1.4 0.80 (0.9%)
Jul 27 95.00 0.09 12 0.8 4.80 (5.4%)
5% Yield On LLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 20 91.00 0.07 5 1.4 0.80 (0.9%)
Jul 27 94.00 0.16 12 1.3 3.80 (4.3%)
10% Yield On LLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 27 92.50 0.32 12 2.7 2.30 (2.6%)
Aug 3 92.00 0.56 19 2.9 1.80 (2.0%)

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