LEGN Dividend Type Payments
Although LEGN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Legend Biotech Corporation - American Depositary Shares to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Legend Biotech Corporation - American Depositary Shares (LEGN) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 39.06 |
40.22 |
39.44 |
+0.48 |
1.1M |
- |
5.2B |
LEGN Dividend-Like Income Using Covered Calls
With LEGN at 39.44, 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% |
1.18 |
0.3 |
| 5% |
1.97 |
0.5 |
| 10% |
3.94 |
1.1 |
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 LEGN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
42.50 |
1.10 |
33 |
3.3 |
2.28 (5.8%) |
| Jul 18 |
42.50 |
0.20 |
5 |
4.0 |
2.28 (5.8%) |
| 5% Yield On LEGN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
42.50 |
1.10 |
33 |
3.3 |
2.28 (5.8%) |
| Jul 18 |
42.50 |
0.20 |
5 |
4.0 |
2.28 (5.8%) |
| 10% Yield On LEGN Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Aug 15 |
42.50 |
1.10 |
33 |
3.3 |
2.28 (5.8%) |
| Jul 18 |
42.50 |
0.20 |
5 |
4.0 |
2.28 (5.8%) |
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