FHI Dividend
Although FHI has a dividend of 1.00 with an ex-dividend date of May 7, you can sell covered calls on Federated Hermes, Inc. 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):
| Federated Hermes, Inc. (FHI) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 32.75 | 33.89 | 32.89 | -0.11 | 830K | 9.4 | 2.8B |
FHI Dividend-Like Income Using Covered Calls
With FHI at 32.89, 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% | 0.99 | 0.3 |
| 5% | 1.64 | 0.5 |
| 10% | 3.29 | 0.9 |
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 May 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IWM dividend | 6. | EEM dividend | 1. | BYND dividend | |
| 2. | QQQ dividend | 7. | TSLA dividend | 2. | HIMS dividend | |
| 3. | HYG dividend | 8. | SLV dividend | 3. | BYON dividend | |
| 4. | SPY dividend | 9. | TLT dividend | 4. | UPST dividend | |
| 5. | FXI dividend | 10. | AMZN dividend | 5. | RIVN dividend | |
Want more examples? FHB Dividend | FHLC Dividend
