LTC Dividend


Although LTC has a dividend of 0.19 with an ex-dividend date of Oct 22, you can sell covered calls on LTC PROPERTIES to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:00 PM ET):

Bid Ask Last Change Volume P/E Market Cap
43.20 43.25 43.22 +0.94 98K 13 1.7B

LTC Dividend-Like Income Using Covered Calls

With LTC at 43.22, 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% 1.30 0.4
5% 2.16 0.6
10% 4.32 1.2

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 LTC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 45.00 0.15 32 0.5 1.75 (4.0%)
Feb 15 45.00 0.65 123 0.5 1.75 (4.0%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
1.SPY dividend 6.BAC dividend   1.NBEV dividend
2.SPX dividend 7.MU dividend   2.CRON dividend
3.EEM dividend 8.FXI dividend   3.ARWR dividend
4.QQQ dividend 9.AMD dividend   4.PYX dividend
5.PBR dividend 10.XLF dividend   5.UVXY dividend

Want more examples? LSXMA Dividend | LTL Dividend