LYG Dividend Type Payments
Although LYG has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Lloyds Banking Group Plc American Depositary Shares 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):
| Lloyds Banking Group Plc American Depositary Shares (LYG) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 3.69 | 3.98 | 3.87 | -0.01 | 20.8M | 50 | 5.5B |
LYG Dividend-Like Income Using Covered Calls
With LYG at 3.87, 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% | 0.12 | 0.0 |
| 5% | 0.19 | 0.1 |
| 10% | 0.39 | 0.1 |
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 LYG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 4.00 | 0.10 | 163 | 0.1 | 0.02 (0.5%) | |
| Jul 18 | 4.00 | 0.10 | 72 | 0.1 | 0.02 (0.5%) | |
| 5% Yield On LYG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Oct 17 | 4.00 | 0.10 | 163 | 0.1 | 0.02 (0.5%) | |
| Jul 18 | 4.00 | 0.10 | 72 | 0.1 | 0.02 (0.5%) | |
| 10% Yield On LYG Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Jul 18 | 4.00 | 0.10 | 72 | 0.1 | 0.02 (0.5%) | |
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| Top 10 Open Interest For May 16 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | IWM dividend | 1. | AFRM dividend | |
| 2. | SPY dividend | 7. | TSLA dividend | 2. | DKNG dividend | |
| 3. | TLT dividend | 8. | FXI dividend | 3. | RKLB dividend | |
| 4. | QQQ dividend | 9. | GLD dividend | 4. | ALT dividend | |
| 5. | SLV dividend | 10. | INTC dividend | 5. | LYFT dividend | |
Want more examples? LYFT Dividend | LYTS Dividend
