FHB Dividend

Although FHB has a dividend of 0.26 with an ex-dividend date of Feb 22, you can sell covered calls on First Hawaiian, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 1:40 PM ET):

First Hawaiian, Inc (FHB)
Bid Ask Last Change Volume P/E Market Cap
27.31 27.32 27.31 +0.07 289K 17 3.7B

FHB Dividend-Like Income Using Covered Calls

With FHB at 27.31, here's a table showing how big the annual "dividend" (ie. 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% 0.82 0.2
5% 1.37 0.4
10% 2.73 0.7

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:

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Top 10 Open Interest For Mar 15 Expiration     Top 5 High Yield
1.SPX dividend 6.EWZ dividend   1.ROKU dividend
2.EEM dividend 7.GE dividend   2.BHC dividend
3.SPY dividend 8.BAC dividend   3.IQ dividend
4.QQQ dividend 9.XOP dividend   4.DBX dividend
5.FXI dividend 10.GLD dividend   5.FIT dividend

Want more examples? FGP Dividend | FHLC Dividend