LBRDK Dividend Type Payments
Although LBRDK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Liberty Broadband Corporation - Class C to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 10:15 AM ET):
| Liberty Broadband Corporation - Class C (LBRDK) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 88.75 |
88.92 |
88.80 |
+1.87 |
110K |
- |
13B |
LBRDK Dividend-Like Income Using Covered Calls
With LBRDK at 88.80, 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% |
2.66 |
0.7 |
| 5% |
4.44 |
1.2 |
| 10% |
8.88 |
2.4 |
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 LBRDK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
90.00 |
1.85 |
18 |
10.3 |
1.08 (1.2%) |
| Sep 19 |
100.00 |
3.40 |
144 |
2.4 |
11.08 (12.5%) |
| 5% Yield On LBRDK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
90.00 |
1.85 |
18 |
10.3 |
1.08 (1.2%) |
| Sep 19 |
100.00 |
3.40 |
144 |
2.4 |
11.08 (12.5%) |
| 10% Yield On LBRDK Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| May 16 |
90.00 |
1.85 |
18 |
10.3 |
1.08 (1.2%) |
| Sep 19 |
90.00 |
7.60 |
144 |
5.3 |
1.08 (1.2%) |
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