LSXMA Dividend Type Payments
Although LSXMA has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Liberty Media Corporation - Series A Liberty SiriusXM to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
Liberty Media Corporation - Series A Liberty SiriusXM (LSXMA) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
24.56 |
25.05 |
24.82 |
+0.31 |
1.4M |
- |
16B |
LSXMA Dividend-Like Income Using Covered Calls
With LSXMA at 24.82, 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% |
0.74 |
0.2 |
5% |
1.24 |
0.3 |
10% |
2.48 |
0.7 |
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 LSXMA Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
25.00 |
0.70 |
26 |
2.5 |
0.00 (0.0%) |
Jun 21 |
25.00 |
1.10 |
61 |
1.7 |
0.00 (0.0%) |
5% Yield On LSXMA Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
25.00 |
0.70 |
26 |
2.5 |
0.00 (0.0%) |
Jun 21 |
25.00 |
1.10 |
61 |
1.7 |
0.00 (0.0%) |
10% Yield On LSXMA Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
May 17 |
25.00 |
0.70 |
26 |
2.5 |
0.00 (0.0%) |
Jun 21 |
25.00 |
1.10 |
61 |
1.7 |
0.00 (0.0%) |
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