LBRT Dividend
Although LBRT has a dividend of 0.09 with an ex-dividend date of Dec 4, you can sell covered calls on Liberty Energy Inc. Class A common stock to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):
| Liberty Energy Inc. Class A common stock (LBRT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 17.76 |
18.10 |
17.73 |
+0.08 |
3.0M |
16 |
2.9B |
LBRT Dividend-Like Income Using Covered Calls
With LBRT at 17.73, 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% |
0.53 |
0.1 |
| 5% |
0.89 |
0.2 |
| 10% |
1.77 |
0.5 |
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 LBRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
19.00 |
0.40 |
24 |
1.7 |
0.90 (5.1%) |
| Jan 16 |
19.00 |
0.95 |
52 |
1.8 |
0.90 (5.1%) |
| 5% Yield On LBRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
19.00 |
0.40 |
24 |
1.7 |
0.90 (5.1%) |
| Jan 16 |
19.00 |
0.95 |
52 |
1.8 |
0.90 (5.1%) |
| 10% Yield On LBRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Dec 19 |
19.00 |
0.40 |
24 |
1.7 |
0.90 (5.1%) |
| Jan 16 |
19.00 |
0.95 |
52 |
1.8 |
0.90 (5.1%) |
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