LPX Dividend Type Payments

Although LPX has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Louisiana-Pacific Corporation 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):

Louisiana-Pacific Corporation (LPX)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
83.00	92.00	84.44	-1.47	763K	28	6.0B

LPX Dividend-Like Income Using Covered Calls

With LPX at 84.44, 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%	2.53	0.7
5%	4.22	1.2
10%	8.44	2.3

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 LPX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	100.00	3.10	151	2.1	8.00 (9.5%)
Jan 16	100.00	0.25	32	0.8	8.00 (9.5%)

5% Yield On LPX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	100.00	3.10	151	2.1	8.00 (9.5%)
Jan 16	95.00	0.55	32	1.7	3.00 (3.6%)

10% Yield On LPX Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 15	95.00	4.30	151	2.8	3.00 (3.6%)
Feb 20	95.00	1.55	67	2.3	3.00 (3.6%)

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Want more examples? LPSN Dividend | LQD Dividend