LPX Dividend

Louisiana-Pacific Corporation dividend

Although LPX has a dividend of 0.28 with an ex-dividend date of Feb 27, you can sell covered calls on Louisiana-Pacific Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 12:25 PM ET):

Louisiana-Pacific Corporation (LPX)
Bid Ask Last Change Volume P/E Market Cap
100.91 101.29 100.94 +0.09 259K 17 7.0B

LPX Dividend-Like Income Using Covered Calls

With LPX at 100.94, 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% 3.03 0.8
5% 5.05 1.4
10% 10.09 2.8

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 LPX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 105.00 8.10 171 4.7 3.71 (3.7%)
May 16 105.00 5.00 80 6.3 3.71 (3.7%)
5% Yield On LPX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 105.00 8.10 171 4.7 3.71 (3.7%)
May 16 105.00 5.00 80 6.3 3.71 (3.7%)
10% Yield On LPX Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 105.00 8.10 171 4.7 3.71 (3.7%)
May 16 105.00 5.00 80 6.3 3.71 (3.7%)

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