HCP Dividend Type Payments

HCP dividend

Although HCP has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on HCP to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 4:16 PM ET):

Bid Ask Last Change Volume P/E Market Cap
24.47 26.00 25.78 +0.10 2.0M 183 12B

HCP Dividend-Like Income Using Covered Calls

With HCP at 25.78, 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% 0.77 0.2
5% 1.29 0.4
10% 2.58 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:

3% Yield On HCP Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 18 27.50 0.30 94 0.3 1.50 (5.8%)

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Top 10 Open Interest For Oct 19 Expiration     Top 5 High Yield
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Want more examples? HCOR Dividend | HCSG Dividend