HAO Dividend Type Payments

Although HAO has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on INVESCO CHINA SM-CAP 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):

INVESCO CHINA SM-CAP (HAO)
Bid Ask Last Change Volume P/E Market Cap
23.41 23.41 23.41 +0.34 11K - 0.9B

HAO Dividend-Like Income Using Covered Calls

With HAO at 23.41, 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% 0.70 0.2
5% 1.17 0.3
10% 2.34 0.6

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 HAO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 25.00 0.10 29 0.3 1.59 (6.8%)
Dec 21 26.00 0.15 64 0.2 2.59 (11.1%)
5% Yield On HAO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 25.00 0.10 29 0.3 1.59 (6.8%)
Dec 21 25.00 0.35 64 0.5 1.59 (6.8%)
10% Yield On HAO Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 24.00 0.40 29 1.4 0.59 (2.5%)
Dec 21 24.00 0.65 64 1.0 0.59 (2.5%)

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Want more examples? HALO Dividend | HAP Dividend