LPLA Dividend Type Payments

LPL Financial Holdings Inc. dividend

Although LPLA has no upcoming (meaning, Board-approved and announced) dividends, 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
189.45 282.39 262.59 +2.82 382K 19 19B

LPLA Dividend-Like Income Using Covered Calls

With LPLA at 262.59, 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% 7.88 2.2
5% 13.13 3.6
10% 26.26 7.2

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
May 17 290.00 0.65 29 2.2 7.61 (2.9%)
Jun 21 290.00 3.20 64 5.0 7.61 (2.9%)
5% Yield On LPLA Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jun 21 290.00 3.20 64 5.0 7.61 (2.9%)
Jul 19 290.00 5.20 92 5.7 7.61 (2.9%)

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Want more examples? LPL Dividend | LPRO Dividend