LYFT Dividend Type Payments
Although LYFT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Lyft, Inc. - Class A 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):
| Lyft, Inc. - Class A (LYFT) |
|---|
| Bid |
Ask |
Last |
Change |
Volume |
P/E |
Market Cap |
| 19.25 |
19.36 |
19.37 |
+0.06 |
5.6M |
51 |
7.8B |
LYFT Dividend-Like Income Using Covered Calls
With LYFT at 19.37, 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% |
0.58 |
0.2 |
| 5% |
0.97 |
0.3 |
| 10% |
1.94 |
0.5 |
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 LYFT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 2 |
19.50 |
0.13 |
3 |
4.3 |
0.14 (0.7%) |
| Feb 6 |
19.50 |
1.02 |
38 |
2.7 |
0.14 (0.7%) |
| 5% Yield On LYFT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 2 |
19.50 |
0.13 |
3 |
4.3 |
0.14 (0.7%) |
| Feb 6 |
19.50 |
1.02 |
38 |
2.7 |
0.14 (0.7%) |
| 10% Yield On LYFT Using Covered Calls |
|---|
| Expiration |
Strike |
Call Bid |
Days |
Cents/Day |
Upside Potential |
| Jan 2 |
19.50 |
0.13 |
3 |
4.3 |
0.14 (0.7%) |
| Feb 6 |
19.50 |
1.02 |
38 |
2.7 |
0.14 (0.7%) |
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