LCUT Dividend
Although LCUT has a dividend of 0.04 with an ex-dividend date of Jan 31, you can sell covered calls on Lifetime Brands, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Lifetime Brands, Inc. (LCUT) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 5.15 | 6.00 | 5.65 | +0.07 | 29K | - | 0.1B |
LCUT Dividend-Like Income Using Covered Calls
With LCUT at 5.65, 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% | 0.17 | 0.0 |
| 5% | 0.28 | 0.1 |
| 10% | 0.57 | 0.2 |
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 LCUT Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 7.50 | 0.10 | 214 | 0.0 | 1.50 (26.5%) | |
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| Top 10 Open Interest For Jan 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | IONQ dividend | |
| 2. | SLV dividend | 7. | INTC dividend | 2. | APLD dividend | |
| 3. | AAPL dividend | 8. | XLF dividend | 3. | NTLA dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | SERV dividend | |
| 5. | EEM dividend | 10. | IWM dividend | 5. | JOBY dividend | |
Want more examples? LCTX Dividend | LDEM Dividend
