LTC Dividend
Although LTC has a dividend of 0.19 with an ex-dividend date of Mar 21, you can sell covered calls on LTC Properties, Inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
| LTC Properties, Inc. (LTC) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 35.42 | 36.32 | 36.09 | +0.33 | 406K | 18 | 1.6B |
LTC Dividend-Like Income Using Covered Calls
With LTC at 36.09, 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% | 1.08 | 0.3 |
| 5% | 1.80 | 0.5 |
| 10% | 3.61 | 1.0 |
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 LTC Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 15 | 40.00 | 0.55 | 162 | 0.3 | 3.68 (10.2%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | KWEB dividend | 1. | APP dividend | |
| 2. | SPY dividend | 7. | QQQ dividend | 2. | QBTS dividend | |
| 3. | IWM dividend | 8. | INTC dividend | 3. | CLSK dividend | |
| 4. | FXI dividend | 9. | TSLA dividend | 4. | KSS dividend | |
| 5. | EEM dividend | 10. | SLV dividend | 5. | ARVN dividend | |
Want more examples? LTBR Dividend | LTL Dividend
