LRCX Dividend Type Payments

LAM RESEARCH dividend

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

LAM RESEARCH (LRCX)
Bid Ask Last Change Volume P/E Market Cap
171.80 172.00 174.29 +1.46 2.3M 12 27B

LRCX Dividend-Like Income Using Covered Calls

With LRCX at 174.29, 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% 5.23 1.4
5% 8.71 2.4
10% 17.43 4.8

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 LRCX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 187.50 0.17 9 1.9 15.50 (8.9%)
Aug 31 190.00 0.34 16 2.1 18.00 (10.3%)
5% Yield On LRCX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 185.00 0.33 9 3.7 13.00 (7.5%)
Aug 31 187.50 0.54 16 3.4 15.50 (8.9%)
10% Yield On LRCX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 24 182.50 0.61 9 6.8 10.50 (6.0%)
Aug 31 185.00 0.83 16 5.2 13.00 (7.5%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
1.EEM dividend 6.GE dividend   1.AMAT dividend
2.SPY dividend 7.GLD dividend   2.NVDA dividend
3.SPX dividend 8.IWM dividend   3.UVXY dividend
4.QQQ dividend 9.FB dividend   4.DE dividend
5.XLF dividend 10.GDX dividend   5.AKRX dividend

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