HDS Dividend Type Payments

HD SUPPLY HOLDINGS dividend

Although HDS has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on HD SUPPLY HOLDINGS to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 2:10 PM ET):

HD SUPPLY HOLDINGS (HDS)
Bid Ask Last Change Volume P/E Market Cap
39.32 39.33 39.33 -0.22 934K 11 7.3B

HDS Dividend-Like Income Using Covered Calls

With HDS at 39.33, 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% 1.18 0.3
5% 1.97 0.5
10% 3.93 1.1

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 HDS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 40.00 0.10 4 2.5 0.67 (1.7%)
Nov 16 42.50 0.15 32 0.5 3.17 (8.1%)
5% Yield On HDS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 40.00 0.10 4 2.5 0.67 (1.7%)
Nov 16 40.00 0.85 32 2.7 0.67 (1.7%)
10% Yield On HDS Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Oct 19 40.00 0.10 4 2.5 0.67 (1.7%)
Nov 16 40.00 0.85 32 2.7 0.67 (1.7%)

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