LW Dividend Type Payments

Although LW has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on LAMB WESTON HOLDINGS INC to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:00 PM ET):

LAMB WESTON HOLDINGS INC (LW)
Bid Ask Last Change Volume P/E Market Cap
66.49 66.51 66.50 -0.34 213K 24 10B

LW Dividend-Like Income Using Covered Calls

With LW at 66.50, 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% 2.00 0.5
5% 3.33 0.9
10% 6.65 1.8

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 LW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 70.00 0.60 31 1.9 3.49 (5.2%)
Jan 18 75.00 0.70 122 0.6 8.49 (12.8%)
5% Yield On LW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 70.00 0.60 31 1.9 3.49 (5.2%)
Jan 18 70.00 1.90 122 1.6 3.49 (5.2%)
10% Yield On LW Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 70.00 0.60 31 1.9 3.49 (5.2%)

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Top 10 Open Interest For Sep 21 Expiration     Top 5 High Yield
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3.SPX dividend 8.VXX dividend   3.GERN dividend
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5.XLF dividend 10.FB dividend   5.ANAB dividend

Want more examples? LVS Dividend | LX Dividend