LULU Dividend Type Payments

Although LULU has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on lululemon athletica inc. to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

lululemon athletica inc. (LULU)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
372.07	379.80	372.07	-18.52	2.0M	30	46B

LULU Dividend-Like Income Using Covered Calls

With LULU at 372.07, 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%	11.16	3.1
5%	18.60	5.1
10%	37.21	10.2

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 LULU Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	380.00	1.43	3	47.7	0.20 (0.1%)
Dec 27	380.00	2.84	10	28.4	0.20 (0.1%)

5% Yield On LULU Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	380.00	1.43	3	47.7	0.20 (0.1%)
Dec 27	380.00	2.84	10	28.4	0.20 (0.1%)

10% Yield On LULU Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	380.00	1.43	3	47.7	0.20 (0.1%)
Dec 27	380.00	2.84	10	28.4	0.20 (0.1%)

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Top 10 Open Interest For Dec 20 Expiration				Top 5 High Yield
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5.	FXI dividend	10.	TSLA dividend	5.	QBTS dividend

Want more examples? LU Dividend | LUMN Dividend