LYFT Dividend Type Payments
Although LYFT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Lyft, Inc. - Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 10:40 AM ET):
Lyft, Inc. - Class A (LYFT) |
Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
16.28 |
16.29 |
16.29 |
+0.42 |
3.5M |
- |
6.3B |
LYFT Dividend-Like Income Using Covered Calls
With LYFT at 16.29, 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% |
0.49 |
0.1 |
5% |
0.81 |
0.2 |
10% |
1.63 |
0.4 |
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 LYFT Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
16.50 |
1.79 |
37 |
4.8 |
0.21 (1.3%) |
May 10 |
16.50 |
1.36 |
9 |
15.1 |
0.21 (1.3%) |
5% Yield On LYFT Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
16.50 |
1.79 |
37 |
4.8 |
0.21 (1.3%) |
May 10 |
16.50 |
1.36 |
9 |
15.1 |
0.21 (1.3%) |
10% Yield On LYFT Using Covered Calls |
Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
Jun 7 |
16.50 |
1.79 |
37 |
4.8 |
0.21 (1.3%) |
May 10 |
16.50 |
1.36 |
9 |
15.1 |
0.21 (1.3%) |
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