LZB Dividend Type Payments

La-Z-Boy, Inc dividend

Although LZB has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on La-Z-Boy, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):

La-Z-Boy, Inc (LZB)
Bid Ask Last Change Volume P/E Market Cap
35.06 35.90 35.90 +0.11 450K 17 1.7B

LZB Dividend-Like Income Using Covered Calls

With LZB at 35.90, 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% 1.08 0.3
5% 1.80 0.5
10% 3.59 1.0

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
Apr 18 40.00 0.20 56 0.4 4.10 (11.4%)
Jul 19 40.00 1.25 148 0.8 4.10 (11.4%)
5% Yield On LZB Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 40.00 1.25 148 0.8 4.10 (11.4%)
Oct 18 40.00 2.15 239 0.9 4.10 (11.4%)

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