H Dividend Type Payments
Although H has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Hyatt Hotels Corporation Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):
| Hyatt Hotels Corporation Class A (H) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 127.77 | 142.53 | 135.42 | -1.24 | 1.1M | 31 | 13B |
H Dividend-Like Income Using Covered Calls
With H at 135.42, 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% | 4.06 | 1.1 |
| 5% | 6.77 | 1.9 |
| 10% | 13.54 | 3.7 |
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:
| 3% Yield On H Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 145.00 | 2.80 | 46 | 6.1 | 2.47 (1.8%) | |
| Nov 21 | 145.00 | 1.50 | 18 | 8.3 | 2.47 (1.8%) | |
| 5% Yield On H Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 145.00 | 2.80 | 46 | 6.1 | 2.47 (1.8%) | |
| Nov 21 | 145.00 | 1.50 | 18 | 8.3 | 2.47 (1.8%) | |
| 10% Yield On H Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Dec 19 | 145.00 | 2.80 | 46 | 6.1 | 2.47 (1.8%) | |
| Nov 21 | 145.00 | 1.50 | 18 | 8.3 | 2.47 (1.8%) | |
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| Top 10 Open Interest For Nov 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | IBIT dividend | 6. | INTC dividend | 1. | PINS dividend | |
| 2. | KVUE dividend | 7. | TLT dividend | 2. | UPST dividend | |
| 3. | NVDA dividend | 8. | ASST dividend | 3. | SMR dividend | |
| 4. | SLV dividend | 9. | HYG dividend | 4. | SMCI dividend | |
| 5. | GLD dividend | 10. | EEM dividend | 5. | TTD dividend | |
Want more examples? GYLD Dividend | HACK Dividend
