HCKT Dividend Type Payments

Although HCKT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Hackett Group, Inc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 12:05 PM ET):

Hackett Group, Inc (HCKT)
Bid Ask Last Change Volume P/E Market Cap
16.08 16.11 16.07 +0.17 149K 22 0.5B

HCKT Dividend-Like Income Using Covered Calls

With HCKT at 16.07, 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% 0.48 0.1
5% 0.80 0.2
10% 1.61 0.4

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 HCKT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 17.50 0.40 53 0.8 1.39 (8.6%)
Aug 16 20.00 0.25 144 0.2 3.89 (24.2%)
5% Yield On HCKT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 17.50 0.40 53 0.8 1.39 (8.6%)
Aug 16 17.50 0.85 144 0.6 1.39 (8.6%)
10% Yield On HCKT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 17 17.50 0.40 53 0.8 1.39 (8.6%)
Aug 16 17.50 0.85 144 0.6 1.39 (8.6%)

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