LOW Dividend Type Payments

LOWES COMPANIES dividend

Although LOW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on LOWES COMPANIES to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

LOWES COMPANIES (LOW)
Bid Ask Last Change Volume P/E Market Cap
98.40 99.50 98.40 +1.31 3.7M 21 79B

LOW Dividend-Like Income Using Covered Calls

With LOW at 98.40, 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% 2.95 0.8
5% 4.92 1.3
10% 9.84 2.7

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 LOW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 102.00 0.05 4 1.3 2.50 (2.5%)
Aug 24 111.00 0.09 11 0.8 11.50 (11.7%)
5% Yield On LOW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 101.00 0.08 4 2.0 1.50 (1.5%)
Aug 24 109.00 0.19 11 1.7 9.50 (9.7%)
10% Yield On LOW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 100.00 0.29 4 7.3 0.50 (0.5%)
Aug 24 107.00 0.31 11 2.8 7.50 (7.6%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
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3.QQQ dividend 8.FXI dividend   3.JWN dividend
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5.XLF dividend 10.GLD dividend   5.A dividend

Want more examples? LORL Dividend | LOWC Dividend