LBRT Dividend Type Payments
Although LBRT has no upcoming (meaning, Board-approved and announced) dividends, 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 |
| 12.10 |
12.48 |
12.40 |
-0.30 |
1.7M |
8.4 |
2.1B |
LBRT Dividend-Like Income Using Covered Calls
With LBRT at 12.40, 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% |
0.37 |
0.1 |
| 5% |
0.62 |
0.2 |
| 10% |
1.24 |
0.3 |
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 |
| Aug 15 |
13.00 |
0.60 |
38 |
1.6 |
0.52 (4.2%) |
| Jul 18 |
14.00 |
0.05 |
10 |
0.5 |
1.52 (12.3%) |
| 5% Yield On LBRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
13.00 |
0.60 |
38 |
1.6 |
0.52 (4.2%) |
| Jul 18 |
14.00 |
0.05 |
10 |
0.5 |
1.52 (12.3%) |
| 10% Yield On LBRT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
13.00 |
0.60 |
38 |
1.6 |
0.52 (4.2%) |
| Jul 18 |
14.00 |
0.05 |
10 |
0.5 |
1.52 (12.3%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
