LM Dividend

LEGG MASON dividend

Although LM has a dividend of 0.34 with an ex-dividend date of Jun 11, you can sell covered calls on LEGG MASON to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 11:30 AM ET):

LEGG MASON (LM)
Bid Ask Last Change Volume P/E Market Cap
39.63 39.64 39.63 +0.15 76K 11 3.3B

LM Dividend-Like Income Using Covered Calls

With LM at 39.63, 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% 1.19 0.3
5% 1.98 0.5
10% 3.96 1.1

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 LM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 15 41.00 0.20 25 0.8 1.36 (3.4%)
Jul 20 42.00 0.35 60 0.6 2.36 (6.0%)
5% Yield On LM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 15 41.00 0.20 25 0.8 1.36 (3.4%)
Jul 20 42.00 0.35 60 0.6 2.36 (6.0%)
10% Yield On LM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 15 40.00 0.60 25 2.4 0.36 (0.9%)
Jul 20 40.00 1.05 60 1.8 0.36 (0.9%)

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Want more examples? LLY Dividend | LMAT Dividend