LPLA Dividend
Although LPLA has a dividend of 0.30 with an ex-dividend date of Mar 10, you can sell covered calls on LPL Financial Holdings Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| LPL Financial Holdings Inc. (LPLA) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 345.00 | 530.00 | 364.50 | +1.79 | 1.2M | 33 | 29B |
LPLA Dividend-Like Income Using Covered Calls
With LPLA at 364.50, here's a table showing how big the annual "dividend" (i.e. 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% | 10.94 | 3.0 |
| 5% | 18.23 | 5.0 |
| 10% | 36.45 | 10.0 |
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:
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| Top 10 Open Interest For Feb 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | QQQ dividend | 1. | BE dividend | |
| 2. | SLV dividend | 7. | EWZ dividend | 2. | OCUL dividend | |
| 3. | KWEB dividend | 8. | CORZ dividend | 3. | SMCI dividend | |
| 4. | GLD dividend | 9. | INTC dividend | 4. | WDC dividend | |
| 5. | IBIT dividend | 10. | SPY dividend | 5. | IREN dividend | |
Want more examples? LPL Dividend | LPRO Dividend
