LZ Dividend Type Payments

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

LegalZoom.com, Inc. (LZ)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
9.16	10.18	9.26	-0.51	3.5M	61	1.7B

LZ Dividend-Like Income Using Covered Calls

With LZ at 9.26, 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%	0.28	0.1
5%	0.46	0.1
10%	0.93	0.3

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 LZ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	11.00	0.60	194	0.3	0.82 (8.9%)
Jun 20	11.00	0.30	103	0.3	0.82 (8.9%)

5% Yield On LZ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	11.00	0.60	194	0.3	0.82 (8.9%)
Jun 20	11.00	0.30	103	0.3	0.82 (8.9%)

10% Yield On LZ Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Sep 19	11.00	0.60	194	0.3	0.82 (8.9%)
Jun 20	11.00	0.30	103	0.3	0.82 (8.9%)

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

Top 10 Open Interest For Mar 21 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	KWEB dividend	1.	WOLF 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.	GRPN dividend
5.	EEM dividend	10.	SLV dividend	5.	ADBE dividend

Want more examples? LYV Dividend | LZB Dividend