LLY Dividend Type Payments

Eli Lilly & Co dividend

Although LLY has no upcoming (meaning, Board-approved and announced) dividends, 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 2:00 PM ET):

Eli Lilly & Co (LLY)
Bid Ask Last Change Volume P/E Market Cap
114.90 114.92 114.92 -0.28 3.9M 37 112B

LLY Dividend-Like Income Using Covered Calls

With LLY at 114.92, 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% 3.45 0.9
5% 5.75 1.6
10% 11.49 3.1

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
Apr 26 121.00 0.08 5 1.6 6.08 (5.3%)
May 3 124.00 0.13 12 1.1 9.08 (7.9%)
5% Yield On LLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 26 121.00 0.08 5 1.6 6.08 (5.3%)
May 3 123.00 0.22 12 1.8 8.08 (7.0%)
10% Yield On LLY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Apr 26 119.00 0.22 5 4.4 4.08 (3.6%)
May 3 121.00 0.47 12 3.9 6.08 (5.3%)

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Top 10 Open Interest For May 17 Expiration     Top 5 High Yield
1.SPY dividend 6.QQQ dividend   1.SNAP dividend
2.COTY dividend 7.BAC dividend   2.TWTR dividend
3.EEM dividend 8.EWZ dividend   3.BCRX dividend
4.FXI dividend 9.XOP dividend   4.TSLA dividend
5.SPX dividend 10.XLF dividend   5.F dividend

Want more examples? LLNW Dividend | LM Dividend