LZB Dividend

La-Z-Boy Incorporated dividend

Although LZB has a dividend of 0.22 with an ex-dividend date of Jun 3, you can sell covered calls on La-Z-Boy Incorporated to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 3:15 PM ET):

La-Z-Boy Incorporated (LZB)
Bid Ask Last Change Volume P/E Market Cap
43.59 43.68 43.63 +1.64 169K 14 1.7B

LZB Dividend-Like Income Using Covered Calls

With LZB at 43.63, 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% 1.31 0.4
5% 2.18 0.6
10% 4.36 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 LZB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 45.00 3.20 159 2.0 1.32 (3.0%)
Jul 18 45.00 1.80 68 2.6 1.32 (3.0%)
5% Yield On LZB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 45.00 3.20 159 2.0 1.32 (3.0%)
Jul 18 45.00 1.80 68 2.6 1.32 (3.0%)
10% Yield On LZB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 17 45.00 3.20 159 2.0 1.32 (3.0%)
Jul 18 45.00 1.80 68 2.6 1.32 (3.0%)

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