HD Dividend Type Payments
Although HD has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Home Depot, Inc. (The) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):
| Home Depot, Inc. (The) (HD) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 369.00 | 370.11 | 370.11 | +0.04 | 2.5M | 25 | 368B |
HD Dividend-Like Income Using Covered Calls
With HD at 370.11, 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% | 11.10 | 3.0 |
| 5% | 18.51 | 5.1 |
| 10% | 37.01 | 10.1 |
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 HD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 370.00 | 7.05 | 19 | 36.5 | 0.00 (0.0%) | |
| Aug 8 | 370.00 | 7.65 | 26 | 29.0 | 0.00 (0.0%) | |
| 5% Yield On HD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 370.00 | 7.05 | 19 | 36.5 | 0.00 (0.0%) | |
| Aug 8 | 370.00 | 7.65 | 26 | 29.0 | 0.00 (0.0%) | |
| 10% Yield On HD Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Aug 1 | 370.00 | 7.05 | 19 | 36.5 | 0.00 (0.0%) | |
| Aug 8 | 370.00 | 7.65 | 26 | 29.0 | 0.00 (0.0%) | |
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| Top 10 Open Interest For Jul 18 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | AAPL dividend | 1. | FULC dividend | |
| 2. | SLV dividend | 7. | GLD dividend | 2. | QS dividend | |
| 3. | SPY dividend | 8. | TLT dividend | 3. | LNTH dividend | |
| 4. | TSLA dividend | 9. | IBIT dividend | 4. | BNED dividend | |
| 5. | IWM dividend | 10. | QQQ dividend | 5. | PRAX dividend | |
Want more examples? HCSG Dividend | HDB Dividend
