EHC Dividend

Although EHC has a dividend of 0.17 with an ex-dividend date of Jul 1, you can sell covered calls on Encompass Health Corporation 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):

Encompass Health Corporation (EHC)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
111.00	125.22	118.90	+0.29	388K	25	12B

EHC Dividend-Like Income Using Covered Calls

With EHC at 118.90, 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%	3.57	1.0
5%	5.95	1.6
10%	11.89	3.3

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 EHC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	125.00	4.40	148	2.8	0.00 (0.0%)
Jul 18	125.00	2.05	57	3.2	0.00 (0.0%)

5% Yield On EHC Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Oct 17	125.00	4.40	148	2.8	0.00 (0.0%)
Jul 18	125.00	2.05	57	3.2	0.00 (0.0%)

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

Top 10 Open Interest For Jun 20 Expiration				Top 5 High Yield
1.	NVDA dividend	6.	IWM dividend	1.	QBTS dividend
2.	SPY dividend	7.	EEM dividend	2.	APLD dividend
3.	SLV dividend	8.	FXI dividend	3.	QUBT dividend
4.	QQQ dividend	9.	TSLA dividend	4.	CAPR dividend
5.	GLD dividend	10.	TLT dividend	5.	RDW dividend

Want more examples? EGY Dividend | EHTH Dividend