LH Dividend

Although LH has a dividend of 0.72 with an ex-dividend date of Feb 27, you can sell covered calls on Labcorp Holdings 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):

Labcorp Holdings Inc. (LH)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
222.85	248.99	243.99	+5.43	594K	45	20B

LH Dividend-Like Income Using Covered Calls

With LH at 243.99, 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%	7.32	2.0
5%	12.20	3.3
10%	24.40	6.7

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 LH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	250.00	14.40	207	7.0	1.01 (0.4%)
May 16	250.00	8.00	116	6.9	1.01 (0.4%)

5% Yield On LH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	250.00	14.40	207	7.0	1.01 (0.4%)
May 16	250.00	8.00	116	6.9	1.01 (0.4%)

10% Yield On LH Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Aug 15	250.00	14.40	207	7.0	1.01 (0.4%)
May 16	250.00	8.00	116	6.9	1.01 (0.4%)

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Want more examples? LGOV Dividend | LHX Dividend