LLY Dividend

Although LLY has a dividend of 1.50 with an ex-dividend date of Feb 14, you can sell covered calls on Eli Lilly and Company to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:50 PM ET):

Eli Lilly and Company (LLY)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
774.37	774.91	774.65	-3.97	1.4M	84	739B

LLY Dividend-Like Income Using Covered Calls

With LLY at 774.65, 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%	23.24	6.4
5%	38.73	10.6
10%	77.47	21.2

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 LLY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	775.00	12.60	3	420.0	0.09 (0.0%)
Dec 27	775.00	21.00	10	210.0	0.09 (0.0%)

5% Yield On LLY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	775.00	12.60	3	420.0	0.09 (0.0%)
Dec 27	775.00	21.00	10	210.0	0.09 (0.0%)

10% Yield On LLY Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	775.00	12.60	3	420.0	0.09 (0.0%)
Dec 27	775.00	21.00	10	210.0	0.09 (0.0%)

Want to increase dividends with covered calls? Sign Up For A Free Trial

Top 10 Open Interest For Dec 20 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	EEM dividend	1.	QBTS dividend
2.	SPY dividend	7.	IWM dividend	2.	RGTI dividend
3.	XLF dividend	8.	KWEB dividend	3.	SERV dividend
4.	QQQ dividend	9.	TLT dividend	4.	WVE dividend
5.	FXI dividend	10.	TSLA dividend	5.	WOLF dividend

Want more examples? LKQ Dividend | LMAT Dividend