LPLA Dividend Type Payments

LPL FINANCIAL HOLDINGS dividend

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

LPL FINANCIAL HOLDINGS (LPLA)
Bid Ask Last Change Volume P/E Market Cap
65.57 65.57 65.57 -0.40 586K 18 5.8B

LPLA Dividend-Like Income Using Covered Calls

With LPLA at 65.57, 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% 1.97 0.5
5% 3.28 0.9
10% 6.56 1.8

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 LPLA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 70.00 0.60 38 1.6 4.43 (6.8%)
Oct 19 70.00 1.10 66 1.7 4.43 (6.8%)
5% Yield On LPLA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 21 70.00 0.60 38 1.6 4.43 (6.8%)
Oct 19 70.00 1.10 66 1.7 4.43 (6.8%)

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Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.NVDA dividend
2.EEM dividend 7.FB dividend   2.UVXY dividend
3.QQQ dividend 8.FXI dividend   3.JWN dividend
4.SPX dividend 9.GLD dividend   4.GDS dividend
5.BAC dividend 10.AABA dividend   5.AMAT dividend

Want more examples? LPL Dividend | LPNT Dividend